GBP/USD turns positive near 1.4230

The sterling is alternating gains with losses on Thursday, taking GBP/USD to the boundaries of the 1.4230 area.

GBP/USD supported near 1.4180

After a brief test to daily lows in the 1.4180 area, the pair has regained the 1.4200 handle and beyond, where it is now looking to consolidate. GBP will also be under the microscope later in the Old Continent, as the upcoming ECB meeting will be a key driver in EUR/GBP’s price action.

Looking to tomorrow’s docket in the UK, the Trade Balance figures will be in the limelight against a vacuum of relevant releases in the US economy.

GBP/USD levels to consider

As of writing the pair is gaining 0.04% at 1.4226 facing the next hurdle at 1.4284 (high Mar.7) followed by 1.4374 (55-day sma) and finally 1.4471 (76.4% Fibo of 1.4670-1.3833). On the flip side, a breakdown of 1.3836 (multi-year low Feb.29) would expose 1.3681 (monthly low June 2001) and then 1.3653 (monthly low March 2009).

ECB Preview: 10 Major Banks expectations from ECB’s take two on Easing

We are just a few hours away from the most challenging central bank meeting in living memory. The following are the expectations as forecasted by the economists and researchers of 10 major banks. After last meeting’s package of measures and introduction of negative rates and as a consequence of the renewed weakness of inflation and its potential impact on long-term inflation expectations, all the 10 major banks are expecting Mr.Draghi to announce a number of additional easing measures including the a further 0.10-0.20 percentage point reduction in the deposit rate, a further extension of the duration of the QE programme, and to increase the amount of monthly QE purchases.
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