GBP/USD drops to new multi-week lows below 1.2650
GBP/USD remains under bearish pressure and trades at its lowest since mid-May below 1.2650. Stronger-than-expected Manufacturing and Services PMI data from the US helped the USD maintain its position and sent the pair lower.
The Bank of England (BoE) announced on Thursday that it is not changing its monetary policy settings. “The June decision is reasonably balanced as higher-than-expected services inflation reflects factors that will not push up medium-term inflation,” the BoE said. The BoE's upbeat tone on the inflation outlook has seen the Pound weaken against its major rivals.
GBP/USD fell below the lower bound of the ascending regression channel and the Relative Strength Index (RSI) indicator on the 4-day chart fell below 40, reflecting a bearish bias in the short-term outlook.
After breaking the important support level of 1,266, the GBPUSD pair may retreat to the 1,259 area before encountering recovery support. The main support level of the pair is at the 1,252 area. If GBP/USD drops below 1.259 and starts to use it as resistance, an extended slide towards 1.252 could be seen
Support: 1,259-1,252
Resistance: 1,266-1,272
Trading signals
SELL GBPUSD zone 1.272-1.274 SL 1.276
BUY GBPUSD zone 1.252-1.250 SL 1.248
GBP/USD remains under bearish pressure and trades at its lowest since mid-May below 1.2650. Stronger-than-expected Manufacturing and Services PMI data from the US helped the USD maintain its position and sent the pair lower.
The Bank of England (BoE) announced on Thursday that it is not changing its monetary policy settings. “The June decision is reasonably balanced as higher-than-expected services inflation reflects factors that will not push up medium-term inflation,” the BoE said. The BoE's upbeat tone on the inflation outlook has seen the Pound weaken against its major rivals.
GBP/USD fell below the lower bound of the ascending regression channel and the Relative Strength Index (RSI) indicator on the 4-day chart fell below 40, reflecting a bearish bias in the short-term outlook.
After breaking the important support level of 1,266, the GBPUSD pair may retreat to the 1,259 area before encountering recovery support. The main support level of the pair is at the 1,252 area. If GBP/USD drops below 1.259 and starts to use it as resistance, an extended slide towards 1.252 could be seen
Support: 1,259-1,252
Resistance: 1,266-1,272
Trading signals
SELL GBPUSD zone 1.272-1.274 SL 1.276
BUY GBPUSD zone 1.252-1.250 SL 1.248
Comment:
GBP/USD struggles near its lowest level since mid-May touched on Friday. Bets for a rate cut by the BoE in August continue to undermine the GBP. The USD climbs to its highest level since May 9 and also exerts pressure.
Trade active
Comment:
Comment:
GBP/USD loses traction, drops below 1.2700
GBP/USD stays on the back foot and trades below 1.2700 in the second half of the day on Tuesday. The cautious market mood and hawkish Fed commentary supports the US Dollar and doesn't allow the pair to build on Monday's recovery gains.
GBP/USD stays on the back foot and trades below 1.2700 in the second half of the day on Tuesday. The cautious market mood and hawkish Fed commentary supports the US Dollar and doesn't allow the pair to build on Monday's recovery gains.
Trade closed: target reached:
GBP/USD gathers some steam and approaches 1.2700
In line with the rest of the risk complex, GBP/USD manages to pick up some pace and retargets the key 1.2700 barrier following some corrective decline in the US Dollar.
In line with the rest of the risk complex, GBP/USD manages to pick up some pace and retargets the key 1.2700 barrier following some corrective decline in the US Dollar.
Trade active
Trade closed: target reached
