GBP/USD Forecast: dovish Carney hits Pound

The GBP/USD pair sunk to 1.2668, following a speech from BOE's Governor Carney, who said that it's no time to raise rates, given the "anemic" wage growth and mixed signals coming from consumer spending. His comments were in line with his previous thoughts, but given Sterling's fragility  following the outcome of the latest election, market players rushed to sell it. The pair bounced from the mentioned daily low, now struggling to regain the 1.2700 level, but still under pressure.

The macroeconomic calendar has nothing to offer this Tuesday, which means that Brexit-related headlines will likely keep on leading the pair, alongside with market's sentiment. As for the greenback, early week demand seems to have eased, although confident US traders may give it another boost, moreover if Wall Street extends its record run.

Technically, the risk is towards the downside for the pair, as in the 4 hours chart, an early advance  was quickly rejected by a bearish 20 SMA, currently around 1.2750, whilst technical indicators extended their bearish slopes within negative territory. Below the mentioned daily low, the next bearish target comes at 1.2634, the low set after the election, while below this last, the decline can extend down to 1.2590.

Resistances stand now at 1.2710, and the mentioned 1.2750 region, where selling interest should cap rallies.

 View live chart of the GBP/USD

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