GBP/USD drops below 1.5400 (Ediburgh) -Renewed weakness surrounding the pound is now driving the GBP/USD to challenge session lows in the area of 1.5370/75 on Monday.

GBP/USD nervous ahead of BoE

A glance at the daily charts shows how solid is the 1.5400 handle for the GBP traders. Despite ephemeral bull runs beyond the critical level in past sessions, the pair was unable to close above it. Against the backdrop of the BoE gathering, analysts at BBH suggested, “Any statement this time will be read with an eye toward the August 7 Quarterly Inflation Report that may also frame the forward guidance issue. Although Carney had seemed sympathetic to targeting nominal GDP, it appears opinion has congealed around the idea of an unemployment threshold (not a trigger), like the US”.

GBP/USD key levels

The pair is now losing 0.02% at 1.5377 with the following support at 1.5356 (low Jul.26) ahead of 1.5307 (MA10d) and finally 1.5300 (psychological level). On the upside, a breakout of 1.5432 (high Jul.25) would aim for 1.5442 (high Jun.26) and then 1.5480 (high Jun.25).