“¢ USD clings to gains after mixed durable goods orders data.
“¢ GBP continues to be weighed down by Haskel’s dovish comments.
“¢ Technical selling below 1.3200 mark might continue exerting pressure.
The GBP/USD pair kept losing ground through the early North-American session and is currently placed at daily lows, around the 1.3170-65 region.
The already stronger US Dollar moved little following the release of mixed durable goods orders data, coming in to show a contraction of 0.6% in May as against a decline of 1% anticipated. The positive headline reading, however, was partly negated by unexpectedly decline in orders excluding transportations items. In fact, core durable goods orders declined by 0.3% as compared to a 0.5% rise expected and 0.9% growth recorded in the previous month.
“¢ US: Orders for manufactured durable goods in May decreased by 0.6% to $248.8 bln
Meanwhile, the British Pound continues to be weighed down by overnight dovish comments by the incoming BoE MPC member Jonathan Haskel, who will be replacing BoE hawk Ian McCafferty – one of the three dissenters in last week’s meeting.
The latest leg of sharp decline over the past couple of hours could also be attributed to some technical selling on a decisive weakness back below the 1.3200 handle. Hence, a follow-through weakness, back towards the pre-BoE swing lows, now looks a distinct possibility.
Technical levels to watch
Immediate support is pegged near mid-1.3100s, below which the pair is likely to accelerate the fall towards challenging the 1.3110-1.3100 strong support. On the upside, any meaningful recovery attempt might now confront fresh supply near the 1.3190-1.3200 region and is followed by a strong resistance near the 1.3230-35 zone.
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