FXStreet (Edinburgh) - The sterling remains unable to gather any traction at the end of the week, driving the GBP/USD to test the critical support at 1.6800.
GBP/USD weaker on BoE, UK data
Spot is retreating for the fourth consecutive week, sharply correcting lower from multi-year peaks in levels just shy of 1.7200 the figure. Disenchantment surrounding an earlier-than-expected rate hike by the BoE, spec positioning and some softer UK data as of late will be ingredients of the current bearish cocktail, now dragging the pair back to levels last seen in early June. Next of significance for GBP traders will be the BoE’s Quarterly Inflation Report, which will surely bring more volatility and news regarding the next steps of the central bank. “While BOE quarterly economic projections are due next week, support at 1.6800 may continue to look precarious with the next downside zone at 1.6700-1.6750 continuing to loom”, suggested Emmanuel Ng, FX Strategist at OCBC Bank.
GBP/USD levels to consider
The pair is now losing 0.15% at 1.6807 with the immediate support at 1.6786 (low Jun.12) ahead of 1.6738 (low Jun.11) and finally 1.6723 (low Jun.5). On the flip side, a breakout of 1.6835 (high Aug.8) would open the door to 1.6872 (high Aug.7) and then 1.6881 (10-d MA).