GBP/USD hangs near yearly lows post-US data, Carney/Powell up next

Haresh Menghani FXStreet

• USD bullish run uninterrupted after mixed durable goods orders.
• Investors’ now eye speeches by BoE Carney and Fed Powell.

The GBP/USD pair held on to its weaker tone, albeit managed to rebound around 15-20 pips from lows following the release of US durable goods orders data.

The pair ticked higher after the latest report, released by the US Census Bureau this Friday, showed new orders for manufactured durable goods contracted 1.7% in April, worse than a decline of 1.4% anticipated.

The negative reading, to some extent, was negated by better-than-expected growth in orders excluding transportations, which recorded a growth of 0.9% and remained supportive of the strong bid tone surrounding the US Dollar.

Currently holding with losses below mid-1.3300s, closer to yearly lows set on Wednesday, investors' now look forward to scheduled speeches by the BoE Governor Mark Carney and the Fed Chair Jerome Powell for some meaningful impetus.

Technical levels to watch

The 1.3300 handle might continue to act as an immediate support, which if broken is likely to accelerate the fall towards 1.3280-75 intermediate support before the pair eventually drops to test the 1.3200 handle.

On the flip side, any meaningful recovery now seems to confront fresh supply near the 1.3380 region, above which a bout of short-covering could lift the pair back towards the 1.3420-30 supply zone.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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