GBP/USD looks vulnerable below 1.3500

  • Cable remains depressed in the 1.3480 region so far.
  • The greenback stays bid above the key hurdle at 93.00 the figure.
  • Attention remains on the US docket later in the session.

The Sterling remains under pressure so far this week and is now taking GBP/USD to the area of 1.3480, at shouting distance from YTD lows in the 1.3460/55 band.

GBP/USD potential test of 1.3718

Cable remains within the multi-session sideline theme so fat this week, trading in the lower bound of the recent range and closer to 2018 lows in the mid-1.3400s.

Spot is down for the second straight session today, coming under further downside pressure after clinching fresh tops just above 1.3600 the figure seen during last week.

In the meantime, the recent price action around Cable has been driven almost exclusively by USD-dynamics, although prospects of a rate hike by the BoE, softer UK data as of late, uncertainty in domestic politics and still lack of important progress in the Brexit negotiations remain poised to weigh on GBP in coming months.

Looking ahead, Industrial/Manufacturing Production, Capacity Utilization, Building Permits and Housing Starts are all due later in the US docket.

GBP/USD levels to consider

As of writing, the pair is losing 0.34% at 1.3474 facing initial contention at 1.3458 (2018 low May 4/Jan.11) seconded by 1.3400 (psychological level) and finally 1.3304 (monthly low Dec.12). On the upside, a break above 1.3557 (200-day sma) would open the door to 1.3658 (2017 high Sep.20) and then 1.3712 (low Mar.1).

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