GBP/USD analysis: at risk of retesting yearly low

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3202

New BOE's member Jonathan Haskel seen as a dove, hurting Pound.
GBP/USD failure to regain the 1.3300 price zone opens doors for a retest of yearly low at 1.3101.

A better bid dollar and news that BOE's MPC Ian McCafferty will be replaced by a less hawkish Jonathan Haskel sent the GBP/USD pair to a daily low of 1.3197, settling around the 1.3200 figure by the end of the US session. Professor Haskel has been appointed as an external member of the BOE for a three-year term starting in September, and while endorsing the current central bank's path, he said, regarding raising rates that "at this stage, I would merely say that given current conditions and current economic data, I agree with the broad direction of travel," with the market rushing to price in a less aggressive stance from the newcomer. He also referred to Brexit in his appearance before lawmakers, saying that it may cause a “temporary lull in the economy.” The GBP/USD pair 4 hours chart shows that it fell below its 20 SMA, the first time since BOE's boost, while technical indicators entered negative territory, with nice downward slopes and at fresh weekly lows, anticipating some further declines ahead. Bulls will become more courageous only on a break above 1.3315, now a less likely scenario, while renewed selling pressure below the 1.5180 region exposes the 1.3100 figure, where the pair bottomed for this 2018.

Support levels: 1.3180 1.3135 1.3100

Resistance levels: 1.3245 1.3280 1.3315

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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