GBP/USD challenges lows near 1.4460

The now better tone around the dollar has prompted GBP/USD to retreat to the area of daily lows around 1.4460.

GBP/USD weaker on USD recovery, oil

Spot is going deeper into the red territory today as the buying interest around the greenback has returned after a weak start during the Asian trading hours. In addition, crude oil prices continue to weaken, adding further downside pressure to the riskier assets.

Nothing from the UK calendar left the attention to the US docket, where St. Louis Fed J.Bullard suggested the economy is growing below trend around 2% while he sees the economy decoupling from risks overseas.

Furthermore, at his speech today, San Francisco Fed J.Williams said 2-3 rate hikes this year and 3-4 hikes in 2017 seems ‘right’. He also showed concerns that inflation expectations could be losing momentum.

GBP/USD levels to consider

As of writing the pair is retreating 0.34% at 1.4465 facing the immediate support at 1.4361 (20-day sma) followed by 1.4337 (100-day sma) and finally 1.4330 (low May 16). On the flip side, a breakout of 1.4548 (high May 23) would expose 1.4666 (high May 19) and then 1.4770 (high May 3).