GBP/USD moves off Carney-lows, but ends day with losses

GBP/USD resumed the fall on Thursday, following two consecutive days of gains as Bank of England Governor, Mark Carney hinted at a summer rate cut.

GBP/USD that had managed to recover from an over three-decade low scored on Monday, turned back south and fell to a low of 1.3204 before finding support. Cable closed the day at 1.3306, recording a 0.89% loss.

The pound came under pressure across the board during the American afternoon as Carney said he favors a rate cut “over the summer” and stressed the BoE has other policy options. He added the MPC could take any steps needed to support the financial system after the Brexit vote.

GBP/USD levels to consider

In terms of technical levels, next supports could be found at 1.3119 (31-year low, Jun 27), 1.3100 and then 1.3000 (psychological levels). On the other hand, resistances are seen at 1.3493/1.3500 (Jun 30 high/psychological level) 1.3532 (Jun 29 high) and not much until 1.3835 (Feb 29 2016 low).