GBP/USD analysis: poised to challenge yearly low

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3139

BOE's Carney concerned about protectionism, Brexit effects on financial firms.
UK GFK Consumer Confidence index expected at -7 in June.

The GBP/USD pair neared its yearly low of 1.3101 in the US session, as dollar's broad strength coupled with discouraging comments from BOE's Governor Mark Carney. Speaking at a press conference after the release of the BOE's Financial Stability Report, Carney expressed concerns about protectionism that could affect global growth and spoke about the risk of disruption for financial firms if the EU does not safeguard vital contracts within the Brexit scenario. There were no macroeconomic releases coming from the UK but this Thursday begins the EU summit to discuss Brexit that will continue Friday, and headlines coming from policymakers will most likely affect Sterling. This Thursday, the UK will release the GFK Consumer Confidence index for June, seen unchanged at -7. In the meantime, the GBP/USD pair is at risk of breaking lower, according to intraday technical readings, given that in the 4 hours chart, technical indicators maintain their bearish slopes, despite the RSI is currently at 29, indicating the strength of sellers. In the same chart, the latest recovery stalled well below a bearish 200 EMA, while today's decline put the price far below a now bearish 20 SMA, also signaling further declines ahead, particularly on a break below the mentioned yearly low.

Support levels: 1.3100 1.3065 1.3020

Resistance levels: 1.3170 1.3200 1.3245

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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