Forex: GBP/USD tumbles ahead of BoE minutes, closer to 1.5000

FXstreet.com (Barcelona) - The GBP/USD is falling down ahead of the BoE March meeting minutes after having reached as high as 1.5111. The pair couldn’t hold above the opening line and is tumbling, currently at 1.5036 low. Investors want to know BoE’s King position on QE and what might come in the future knowing that UK data has been weak lately.

“We think that we’ll see a 6-3 or possibly even 5-4 vote, with Governor King continuing to favor further QE”, wrote analyst Alvin Pontoh, adding that gilts might rally with suggestions that members would have considered voting for an extension if it wasn’t for the reinvestment from the matured 4H13. UK labor market data and the Budget report will also be eyed.

“GBP/USD stayed below Friday’s 1.5176 high and the minor 1.5199/1.5223 resistance area (late February and early March highs) for the past few day”, wrote Commerzbank analyst Karen Jones. “We expect this state of affairs to continue and for GBP/USD to drift lower again towards the psychological 1.5000 region