GBP/USD analysis: poised to challenge yearly low
|GBP/USD Current price: 1.3139
- BOE's Carney concerned about protectionism, Brexit effects on financial firms.
- UK GFK Consumer Confidence index expected at -7 in June.
The GBP/USD pair neared its yearly low of 1.3101 in the US session, as dollar's broad strength coupled with discouraging comments from BOE's Governor Mark Carney. Speaking at a press conference after the release of the BOE's Financial Stability Report, Carney expressed concerns about protectionism that could affect global growth and spoke about the risk of disruption for financial firms if the EU does not safeguard vital contracts within the Brexit scenario. There were no macroeconomic releases coming from the UK but this Thursday begins the EU summit to discuss Brexit that will continue Friday, and headlines coming from policymakers will most likely affect Sterling. This Thursday, the UK will release the GFK Consumer Confidence index for June, seen unchanged at -7. In the meantime, the GBP/USD pair is at risk of breaking lower, according to intraday technical readings, given that in the 4 hours chart, technical indicators maintain their bearish slopes, despite the RSI is currently at 29, indicating the strength of sellers. In the same chart, the latest recovery stalled well below a bearish 200 EMA, while today's decline put the price far below a now bearish 20 SMA, also signaling further declines ahead, particularly on a break below the mentioned yearly low.
Support levels: 1.3100 1.3065 1.3020
Resistance levels: 1.3170 1.3200 1.3245
View Live Chart for the GBP/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.