GBP/USD keeps the red below 1.34 mark, near 2-week lows after Carney and May

Haresh Menghani FXStreet

The GBP/USD pair faded a knee-jerk spike to 1.34 neighborhood and quickly retreated to hit fresh session lows, in the 1.3350-40 region.

The pair gained some positive traction following BoE Governor Mark Carney's opening remarks at the central bank's conference, in London. The uptick met with fresh supply in wake of Carney's comments that pointed to a weaker real income growth scenario accompanying Brexit.

• BoE's Carney: MonPol cannot prevent weaker real income growth likely to accompany Brexit

Meanwhile, by the UK PM Theresa May, at today’s BoE event, did little to provide any fresh impetus, with a modest US Dollar retracement helping the pair to rebound around 15-20 pips from fresh two-week lows.

Today's US economic docket, highlighting the final revision of US GDP growth numbers might now turn out to be next big catalyst for the pair’s movement on Thursday.

Technical levels to watch

On a sustained weakness below mid-1.3300s, the pair is likely to accelerate the slide towards 1.3285 level with some intermediate support near the 1.3300 handle.

Meanwhile, on the upside, the 1.3400 handle now seems to have emerged as immediate resistance and any subsequent up-move now seems to face fresh supply near the 1.3430-35 region.

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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