GBP/USD accelerates the downside to 1.2660

Pablo Piovano FXStreet

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).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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