FXStreet (Edinburgh) - The sterling is trading on a softer tone on Thursday, with the GBP/USD now putting the 1.7100 key support to the test.

GBP/USD weaker on data, BoE

Less auspicious data from the UK trade balance during May (deficit at £9.2 billion) plus a passive BoE in today’s MPC meeting (repo rate and asset purchase facility unchanged) are collaborating with the GBP downside so far, testing the lower band of the intraday range. “The strong support at 1.7085 is still intact and the strong overnight rebound is expected to extend higher towards 1.7175/80. The immediate support at 1.7115 is likely strong enough to hold any intraday pullback”, observed Quek Ser Leang, Market Strategist at UOB Group.

GBP/USD levels to consider

At the moment the pair is losing 0.27% at 1.7109 with the next support at 1.7095 (low Jul.9) followed by 1.7085 (low Jul.8) and then 1.7081 (38.2% of 1.6920-1.7180). On the flip side, a break above 1.7172 (high Jul.7) would target 1.7180 (2014 high Jul.4) en route to 1.7203 (high Oct.21 2008).

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Trading Center