GBP/USD recovery falters at 1.3050, BOE’s Carney eyed

The GBP/USD pair tried hard to rise back above 1.3050 levels, but the bears continue to retain control, despite downbeat UK CPI data and fresh broad based USD selling.

GBP/USD: Focus shifts to Carney’s speech

The spot is seen making minor-recovery mode over the last hour, as markets continue to assess the latest UK CPI report, which showed a downtick in the UK price pressures in the month of June.

Markets now believe that an unexpected drop in the UK’s inflation rate is likely to lift the pressure of the BOE, as the BOE policymakers were concerned about the inflation overshooting the central bank’s target.

At the same time, however, the data also suggests signs of cooling economic growth, as consumer spending drops. Hence, keeping the renewed downside momentum intact in Cable.

All eyes now shifts towards the BOE Governor Carney’s speech for his views on the latest inflation figures and its implications on the central bank’s interest rates outlook.

GBP/USD levels to consider             

Valeria Bednarik, Chief Analyst at FXStreet noted, “Declines are expected to remain moderate, given the absence of dollar's demand, but a downward acceleration below 1.3000 should lead to a test of the 1.2960 region, while below this last, the slide can extend down to 1.2920. The immediate resistance comes at 1.3060, Monday's low, with a recovery above it favoring further gains towards the 1.3110/20 region.”

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.