The pound is in one of its slumps and has managed only 1 winning month in the last 6
This month hasn't kicked off too well for the quid either. 1.4600 is the last big hurdle in the way of a drop down to the Apr 2015 low at 1.4569. From there, around 1.4500/30 is the only decent looking support I see before a gap down to the low 1.43's
GBPUSD monthly chart
The 1.4530 area is where I would look for a long play and the 1.4800/20 level is where a short trade looks most solid. That's fairly decent looking range to play in
Compared to the fall from the 1.70's in 2014, the 2015 picture looks very much like a bounce of the dead cat variety and that makes last years low and the 1.4500/30 level important as a sign of another bottom
There's not a lot in the air regarding UK interest rates but next week we get the first BOE announcement of 2016, and the first after the Fed. If the BOE want to set their stall out for this year then that's as good a place as any to start. Carney thinks the market is too far out in it's view on rates but whether he tries to reign that in just yet remains to be seen
