GBP/USD reverses Carney-led drop, re-takes 1.2700

 The GBP/USD pair is seen paring losses in the European session, as the bulls try to regain 1.27 handle amid risk-on market profile.

GBP/USD: Focus shifts to Fedspeaks, US data

BOE Governor Mark Carney’s surprisingly dovish remarks caught the GBP markets off-guard, hammering the pound sharply to 1.2670 against its American rival. Markets had expected hawkish comments on the interest rates, after last week’s major shift in the MPC voting composition to 5-3 in favour of a steady policy stance, when compared 7-1 widely expected.

BOE’s Carney: Now is not yet the time for rate adjustment

BOE’s Carney: Brexit will be a big test

Moving on, it remains to be seen if the spot can sustain the recovery mode, as the greenback continues to remain near daily highs against its major peers, awaiting next round of Fed speakers and the US current account data for next push higher.

Later this week, the next big event for the sterling is the Queen’s Mansion House speech due tomorrow, while ongoing Brexit talks  will continue to keep the investors on the edge.

GBP/USD levels to consider             

R. Roy, the Founder of Preferforex noted: “After breaking the last low, GBPUSD is now rebounded to retest our expected resistance area at 1.2834-77 which was acting as support previously. The long term view is still bullish. It is expected a bearish movement from this area targeting 1.2705 followed by 1.2620. But the scenario will be invalid if the price break the recent high at 1.3046 and that time price the bullish bias will be more significant.”