Forex: GBP/USD retreats after King comments

FXstreet.com (Córdoba) - The pound weakened slightly during the American afternoon and erased gains versus the dollar after the BoE Governor King said that the central bank is ready to provide more stimulus if needed.

GBP/USD pulled back toward the 1.5840 area from 1.5870 before the speech, but remains well within its intraday range, capped by 1.5900 on the upside and contained by 1.5810 on the downside.

At time of writing, GBP/USD is trading at the 1.5840 zone, where it is only a few pips above its opening price. According to, Slobodan Drvenica, analyst at Windsor Brokers Ltd, Cable trades in near-term consolidative mode, following repeated failure at 1.5800 support. Recovery is so far limited under initial 1.5900 barrier and 200 day MA, however, "with short-term indicators turning higher, a possible stronger recovery cannot be ruled out", the analyst said.

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