- US Dollar remains strong in the market with DXY Futures holding near 95.00.
- GBP/USD unable to recover above 1.3100, trends points to the downside.
The GBP/USD pair is about to post the third decline in-a-row and the lowest close since November. After the beginning of the US session, Cable rebounded but the recovery was capped by the 1.3100 area. Near the end of the session, GBP/USD was again moving south, trading at 1.3070.
Comments from Bank of England Monetary Policy Committee member Andy Haldane (who voted for a rate hike at last weeks’ meeting) mentioned that he doesn’t believe that the central bank needs to rise rates faster. His comments contributed to weaken the pound and completed a “reversal” from last week “hawkish” BoE meeting. Adding to Pound’s weakness were Brexit concerns. The European Union summit started today with no optimism about an improvement in getting a deal soon.
The greenback remains strong in the market increasing the bearish pressure on GBP/USD.
Technical Levels
“The 4 hours chart for the pair shows that it’s developing well below a bearish 20 SMA, while technical indicators hold within oversold readings, the Momentum recovering modestly and the RSI consolidating around 26, favoring additional declines ahead on a break below the mentioned yearly low”, said Valeria Bednarik, Chief Analyst at FXStreet.
The trend continues to point to the downside. The next strong support might be seen between 1.3030 and 1.3000. A break lower could clear the way for a slide to 1.2930.
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