FXStreet (Edinburgh) - The sterling gave away initial gains to the boundaries of 1.6600 the figure on Friday, with the GBP/USD now coming down to test lows near 1.6570.

GBP/USD faded the post-BoE spike

The better risk sentiment on Thursday boosted spot to fresh intraday peaks in levels just shy of the 1.6600 handle, although the bull attempt run out of legs pari pasu with a re-emergence of dollar buying. Therefore, the pound leaves behind the spike after a hawkish tone from the BoE minutes, just to join the rest of the risk related assets on their way south. “With the 200-day MA (1.6682) now serving as a resistance, the pair may continue to grind lower in the coming sessions pending the news flow from Yellen and Draghi later today. Note that the previous occurrence of a sustained break of the 200-day MA in 2013 did not work out so well for the GBP-USD with an approximate -6.75% decline thereafter by March 2013”, noted Emmanuel Ng, FX Strategist at OCBC Bank.

GBP/USD levels to watch

As of writing the pair is retreating 0.03% at 1.6574 with the next support at 1.6564 (low Aug.21) ahead of 1.6555 (low Apr.4) and finally 1.6460 (low Mar.24). On the upside, a breakout of 1.6602 (high Aug.21) would open the door to 1.6677 (10-d MA) and then 1.6680 (200-d MA).

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!