GBP/USD drops below 1.6500 after Carney's speech

FXStreet Team FXStreet

FXstreet.com (Córdoba) - The GBP/USD came under strong pressure and slumped during the European session after BoE Carney's speech.

Dovish Carney weighs on the GBP/USD

The Bank of England Governor Carney said in a speech at the World Economic Forum in Davos, that the MPC will update its forward guidance strategy in February after acknowledging that unemployment has fallen faster than anticipated. However, Carney stressed that now is not the time to raise rates. The GBP/USD fell over 100 pips in a matter of minutes and hit a 2-day low sub 1.6500.

GBP/USD levels to watch

At time of writing, the GBP/USD is trading at the 1.6510 zone, 0.7% below its opening price, having scored a low of 1.6495. Immediate supports are now seen at 1.6495 (Jan 24 low) and 1.6455 (21-day SMA). On the other hand, resistances could be found at 1.6667 (Jan 24 high) and 1.6700 (psychological level).

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FXStreet Team

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