GBP/USD fresh 7-week lows, BoE comments weigh

By FXstreet.com | July 31, 2014 AAA

FXStreet (Córdoba) - The GBP/USD extended the decline and fell to fresh 7-week lows sub-1.6900 Thursday, weighed by broad USD strength and dovish comments from a BoE official.



The GBP/USD broke below another important support at 1.6882 (61.8% Fibo of 1.6692/1.7190) and scored a low of 1.6869 so far. The pair is now moving toward the 100-day SMA that stands as next major support at 1.6855.



The Cable has fallen more than 300 pips since peaking at 1.7190 mid-July, as investors unwind long positions amid prospects the BoE won't hike rates before year-end. BoE Deputy Governor Ben Broadbent said Thursday rate rises to be "gradual and limited" and the pound might be "overvalued", echoing comments from the IMF.



GBP/USD technical levels



As for technical levels, next supports are seen at 1.6855 (100-day SMA) and 1.6800 (psychological level). On the other hand, resistances could be found at 1.6954 (Jul 30 high), 1.6970 (50-day SMA) and 1.7000 (psychological level/Jul 28 high).



comments powered by Disqus
Related Forex Analysis
  1. EUR/USD sitting just above 1.2950 support
    Forex News

    EUR/USD sitting just above 1.2950 support

  2. Yen Gains, Aussie Dollar Falls on Soft Chinese Economic Data
    Forex News

    Yen Gains, Aussie Dollar Falls on Soft Chinese Economic Data

  3. USD/JPY drifting lower, but still well above 107.00
    Forex News

    USD/JPY drifting lower, but still well above 107.00

  4. Crude Oil Prices Aiming to Extend Lower, SPX 500 May Be Topping
    Forex News

    Crude Oil Prices Aiming to Extend Lower, SPX 500 May Be Topping

  5. USD/JPY Technical Analysis: Prices Set New Six-Year High
    Forex News

    USD/JPY Technical Analysis: Prices Set New Six-Year High

Trading Center