GBP/USD consolidates at daily lows

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Córdoba) - The GBP/USD entered a consolidation phase after the knee-jerk reaction to BoE minutes, and it has spent the last hours in a tight range as investors remain sidelined ahead of the Fed statement.



The GBP/USD wavered and fell to fresh daily lows after the BoE latest minutes revealed concerns among members that a premature rate rise could lead to “considerable costs” in lost output and that the uncertainty over its impact reinforces case for hiking rate “gradually and cautiously”. Following Carney’s comments last Thursday, this tempered expectations of a rate hike in Q4 2014.



The GBP/USD bottomed out at 1.6931 before stabilizing and it was last down 0.15% at 1.6937 as attention turns to the Fed now.



GBP/USD technical levels



In terms of technical levels, supports for Cable are seen at 1.6931 (Jun 18 low), 1.6900 (psychological level) and 1.6875 (10-day SMA). On the other hand, if the GBP/USD breaks decisively above 1.7000 next resistances could be found at 1.7010 (4-yr high Jun 16) and 1.7041 (Aug 5 2009 high).



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