17 Jul 2014
GBP/USD hits fresh 2-day low below 1.7100
FXStreet (Córdoba) - The US dollar gained momentum against European currencies during the American session and reached fresh daily high. The GBP/USD broke below 1.7100 and dropped to 1.7084 hitting the lowest price since Tuesday, when it rallied after UK inflation data.
The pair found support around 1.7085 and rebounded. In the last two hours it has been trading in range between 1.7107 and 1.7090, approximately 35 pips below the price it had at the beginning of the day.
GBP/USD reversing after being unable to hold above 1.7150
“Cable has struggled to take out the 1.7150 figure for more than a week and if it fails to do so today it may provoke a deeper correction as late longs chose to bail out of the trade” said Boris Schlossberg from BK Asset Management.
According to Schlossberg the Bank of England, considering the lack of price pressures, is likely to maintain its dovish bias “as Mr. Carney and company are clearly fearful that any tightening may snuff out or slow down the UK economic recovery”.
The pair found support around 1.7085 and rebounded. In the last two hours it has been trading in range between 1.7107 and 1.7090, approximately 35 pips below the price it had at the beginning of the day.
GBP/USD reversing after being unable to hold above 1.7150
“Cable has struggled to take out the 1.7150 figure for more than a week and if it fails to do so today it may provoke a deeper correction as late longs chose to bail out of the trade” said Boris Schlossberg from BK Asset Management.
According to Schlossberg the Bank of England, considering the lack of price pressures, is likely to maintain its dovish bias “as Mr. Carney and company are clearly fearful that any tightening may snuff out or slow down the UK economic recovery”.