FxWirePro: GBP/USD outlook weaker on renewed downside pressure
GBP/USD declined on Tuesday as firmer dollar and dovish comments from Bank of England Governor Mark Carney weighed on British pound. The British pound fell almost a cent against its U.S. counterpart after BoE Governor Ma…
GBP/USD declined on Tuesday as firmer dollar and dovish comments from Bank of England Governor Mark Carney weighed on British pound.
The British pound fell almost a cent against its U.S. counterpart after BoE Governor Mark Carney said now was not the time to raise UK interest rates. Last week three BoE policymakers had voted in favour of a hike.
Sterling also weakened as investors were uncertain of having no government at home 12 days after a parliamentary election and talks, which began on Monday, on Britain's exit from the European Union adding to pressure on the pound.
The ongoing weakness is set to continue for this pair as the resistance level at 1.2775 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
To the upside, immediate resistance can be seen at 1.2691, a break above this level would expose the cable to next resistance level at 1.2775 levels.
To the downside strong support can be seen at 1.2604, a break below at this level will open the door towards next level at 1.2542.
