GBP/USD accelerates the downside to 1.2660

The Sterling stays well on the defensive during the first half if the week, with GBP/USD now dropping to fresh lows in the 1.2660 area.

GBP/USD weaker on dovish Carney

Cable reverted the initial spike to the 1.2760 region, now shedding around a cent to fresh 5-day lows in the 1.2665/60 band following recent dovish comments by BoE’s Mark Carney at Mansion House.

The selling pressure around the British Pound intensified after Governor Carney ruled out a move on interest rates for the time being, while bets for a rate hike by end of next year have tumbled to 47% from 77% before Carney’s speech.

Collaborating with the downside, the greenback has managed to bounce off recent lows and retake the 97.30/35 band, or daily highs, despite mixed messages from FOMC’s Dudley and Evans.

GBP/USD levels to consider

As of writing the pair is losing 0.55% at 1.2668 and a breakdown of 1.2633 (100-day sma) would open the door to 1.2632 (low Jun.9) and finally 1.2558 (200-day sma). On the flip side, the next resistance is located at 1.2814 (high Jun.19) followed by 1.2836 (20-day sma) and then 1.2979 (high Jun.8).

 

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