FXStreet (Córdoba) - The GBP/USD dropped more than 100 pips and had the worst day in months. Price bottomed at 1.6683 during the American session and finished trading slightly above the lows, around 1.6688, posting the lowest daily close since April.
Economic data from the UK and a dovish message from the Bank of England pushed the Pound toward the downside across the board on Wednesday. During the European session the GBP/USD reached 1.6840 but then reversed, falling almost 160 pips from the highs.
GBP/USD technical perspective
“The hourly chart shows indicators still heading lower despite in extreme oversold levels, while 20 SMA turned strongly south, offering now dynamic resistance in the 1.6760 price zone”, says Valeria Bednarik, Chief Analyst at FXStreet.
The 4-hour chart is also strongly bearish notes Bednarik, “supporting fresh lows ahead as long as mentioned resistance holds”.