GBP/USD challenges 1.7100

By FXstreet.com | Updated July 30, 2014 AAA

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).



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