“¢ GBP continues to be weighed down by Haskel’s dovish comments overnight.
“¢ A modest USD uptick, despite sliding US bond yields, adds to the selling bias.
“¢ The bearish pressure eases after BoE’s FSR and ahead of Carney’s press conference.
The GBP/USD pair remained under some selling pressure on Wednesday and momentarily dipped below the 1.3200 handle in the last hour.
The pair extended last week’s retracement slide from the hawkish BoE-led swing high level of 1.3315 and came under some renewed selling pressure on Tuesday, following some dovish comments by the incoming BoE MPC member Jonathan Haskel.
Haskel, who will be replacing BoE hawk Ian McCafferty, one of the three dissenters in last week’s meeting, indicated possibilities of a rate cut in case of an economic downturn and triggered some fresh GBP weakness.
The weakening trend extended through the early European session on Wednesday and was further weighed down by a modest US Dollar uptick, despite the ongoing slide in the US Treasury bond yields.
The selling pressure seemed abating, with the pair quickly recovering around 25-pips from lows following the release of BoE Financial Stability Report (FSR). The uptick, however, lacked any strong follow-through as investors preferred to wait on the sideline ahead of the BoE Governor Mark Carney’s press conference about the FSR.
Technical levels to watch
Immediate support is pegged near the 1.3170-65 region, below which the pair is likely to head back towards challenging YTD lows support near the 1.3100 handle.
On the flip side, any meaningful up-move beyond the 1.3200 mark now seems to confront resistance near the 1.3240 level, which if cleared could assist the pair to make a fresh attempt towards conquering the 1.3300 handle
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