GBP/USD breaks below 1.2700 on dovish Carney

Pablo Piovano FXStreet

The British Pound reverted its initial upbeat tone and is now dragging GBP/USD to print fresh daily lows in the vicinity of 1.2680.

GBP/USD offered on Carney

Cable reacted adversely after Governor M.Carney’s speech at Mansion House today.

Governor Carney stressed that now is not the time to move on rates, while he reiterated that domestic inflationary pressures remain depressed.

Spot has quickly come under renewed selling pressure in response to Carney’s dovish message, dropping to fresh 5-day lows in the 1.2680/70 band, while UK’s 10-year reference yield fell below the critical 1.00% handle.

GBP/USD levels to consider

As of writing the pair is losing 0.48% at 1.2677 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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