GBP/USD challenges 1.6700

By FXstreet.com | Updated August 13, 2014 AAA

FXStreet (Edinburgh) - The sterling keeps giving ground on Wednesday, now dragging the GBP/USD to test the key 1.6700 support.



GBP/USD weaker post-BoE



The sterling is suffering the dovish tone struck by Governor M.Carney in today’s Quarterly Inflation Report by the Bank of England. The central banker crushed hopes of a rate hike later this year and asserted that the spare capacity is higher tan previously thought. “We remain comfortable with our forecast for a February 2015 start and see the risks even skewing now to May. No wages, no hiking”, commented Analysts Rich Kelly and Jacqui Douglas at TD Securities.



GBP/USD levels to consider



As of writing the pair is losing 0.62% at 1.6706 with the next support at 1.6699 (low Jun.4) followed by 1.6693 (low May 29) and then 1.6661 (200-d MA). On the upside, a break above 1.6850 (high Aug.13) and finally 1.6872 (high Aug.7).



You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    UK YouGov election poll: Labour leads by 1 point

  2. Forex News

    FX recap: Initial gains in the USD pared - ANZ

  3. Forex News

    GBP/USD could target 1.4291 in the longer-term – Commerzbank

  4. Forex News

    GBP/USD upside stalled near 1.4870

  5. Forex News

    GBP/USD jumps above 1.4825

Trading Center