GBP/USD dips to 1.6830

By FXstreet.com | Updated August 01, 2014 AAA

FXStreet (Edinburgh) - The sterling is quickly losing the grip at the end of the week, dragging the GBP/USD to 8-week lows around 1.6830.

GBP/USD in multi-week lows

Spot is retreating for the fourth consecutive week so far, coming down from multi-year peaks in levels just shy of 1.7200 the figure in mid-July. Today’s softer UK manufacturing PMI during July (55.4 act. vs. 57.5 prev.) just accentuated the bearish sentiment surrounding the pound as of late, pushing the pair to levels last seen in early June. “It is possible that concerns over potential BoE interest rate rises are weighing a little, as they clearly were on this week’s consumer confidence number, while the Ukraine situation may also be making firms a little nervous about expanding output. Sterling strength could also be something of an issue too. Nonetheless, it is important to remember that this index is still firmly in expansion territory and that the slack in the economy continues to be eroded”, assessed James Knightley, Analyst at ING Bank.

GBP/USD levels to consider

At the moment the pair is down 0.31% at 1.6831 with the immediate support at 1.6811 (76.4% of 1.6693-1.7192) followed by 1.6786 (low Jun.12) and finally 1.6738 (low Jun.11). On the upside, a breakout of 1.6926 (high Jul.31) would open the door to 1.6956 (high Jul.30) and then 1.6873 (10-d MA).

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