GBP/USD retreats aiming 1.6800

By FXstreet.com | Updated August 06, 2014 AAA

FXStreet (Córdoba) - The GBP/USD is back under pressure, having resumed the downward move Wednesday, weighed by disappointing UK data and broad USD strength.



The GBP/USD has lost more than 60 pips throughout the day, reversing almost completely its weekly advance. The Cable scored a low of 1.6820 and looks to be preparing to test the 1.68 mark. At time of writing, the pair is trading at 1.6830, down 0.32% on the day.



UK industrial production rose 0.3% in June versus 0.6% expected, raising concerns about the state of the British economy.



GBP/USD technical perspective



"Latest recovery stalled right below the 23.6% retracement of the 1.7190/1.6802 daily decline, increasing the risk of more slides: below last week low of 1.6802, the pair may quickly ease towards 1.6760/70 price zone, while if below this last, 1.6720 is next", said Valeria Bednarik, chief analyst at FXStreet. "Recoveries up to 1.6895, mentioned Fibonacci level will likely be seen as selling opportunities, as only a clear advance above this last will favor a rally towards 1.6940 price zone".



You May Also Like

Related Forex Analysis
  1. Forex News

    Weekly Trading Forecast: How Far can the Dollar Go in 2014?

  2. Forex News

    GBP/USD Range in Focus Ahead of U.K. & U.S. 3Q GDP Reports

  3. Forex News

    Sterling between bullish dollar and bearish euro - BBH

  4. Forex News

    US Dollar Targets Fresh Highs versus Euro, but What Could Change?

  5. Forex News

    GBP/USD soft into the closing hours - Scotiabank

Trading Center