GBP/USD well supported above $1.4200 level, BOE Gov Carney speech in focus

GBP/USD is currently trading at $14227 levels, made intraday high at $1.4252 levels. Last week the pound hit its lowest level in nearly seven years, when it fell to $1.4084.

• BoE policy maker Kristin Forbes said that "tightening monetary policy today would require faith that our forecasting models will work and the tightness in labour market quantities and measures of labour market churn will soon translate into stronger wages." And, "the most recent falls in oil prices, by delaying the recovery in inflation, provide the luxury of a bit more time to build this confidence."
   
• Sterling depreciated slightly against the major peers after the comments from Kristin Forbes.
   
• Investors are also awaiting testimony from Bank of England Governor Mark Carney, who is due to testify on the Financial Stability Report before the Treasury Select Committee in London.
   
• Intraday bias remains bearish with down side support levels are seen at $1.4128 and $1.4079.
   
• On the top side strong resistance level is seen at $1.4362 levels.
   
•  We prefer to take short position in GBP/USD from $1.4240, stop loss at $1.4362 levels and target $1.4125.