- Cable collapses to the mid-1.3100s, fresh lows.
- The better tone around the greenback weighs on the riskier assets.
- No news from the BoE’s Financial Stability Report.
GBP/USD is now accelerating the downside and navigates the area of fresh lows in the 1.3155/50 region amidst a robust rebound in the buck.
GBP/USD in 4-day lows
Cable is down for the second session in a row on Wednesday, shedding more than a cent since recent peaks beyond 1.3300 the figure seen earlier in the week on the back of a moderate rebound in the demand for the greenback.
In fact, cable retreats further and risks at the same time a visit to YTD lows in the 1.3100 neighbourhood seen during last week. The Sterling remains vulnerable amidst the lack of significant progress in the Brexit talks and political uncertainty around PM May government, while the recent hawkish tone from the Bank of England carries the potential to limit the downside.
Earlier in the session, Governor M.Carney said that global risks have intensified at his speech in the release of the Boe’s Financial Stability Report.
GBP/USD levels to consider
As of writing, the pair is retreating 0.50% at 1.3158 and a break below 1.3150 (low Jun.27) would expose 1.3101 (2018 low Jun.21) and finally 1.3039 (monthly low Nov.3 2017). On the upside, the next resistance emerges at 1.3205 (low May 29) seconded by 1.3232 (10-day sma) and then 1.3302 (21-day sma).
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