GBP/USD reverses BOE Carney-led rebound

Having faced strong offers around 1.22 handle on several occasions, the GBP/USD pair is extending the retreat from BOE Carney’s comments inspired highs.

GBP/USD back below 1.2200 

The cable failed to sustain a break above 1.22 handle and embarked upon a steady declining path, retracing almost a quarter of yesterday’s solid rebound staged by the GBP, after BOE Carney, during his testimony before the House of Lords economic affairs committee,  talked down on the negative interest rates policy and added further that not all scenarios allow monetary policy to be as accommodative after the referendum.

Moreover, the US dollar took a complete U-turn against its major counterparts and now makes minor-recovery attempts, further collaborating to the bearish sentiment around the major. While markets weigh the reports of a leaked video of UK PM May with Goldman Sachs pre-Brexit vote, with May talking on the economic benefits of staying in the EU.

The GBP/USD pair trades -0.20% at 1.2166, flirting with daily lows struck at 1.2160. While the USD index remains better around 98.73.

Next of note for the major remains the US macro news amid a fairly light UK docket today, while all eyes remain on the UK prelim GDP data due on the cards tomorrow ahead of the US durable goods data.

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2209 (5-DMA), 1.2263 (Oct 21 high)1.2300 (Oct 20 high) and 1.2300 (Oct 20 high). While supports are lined up at 1.2150 (psychological levels) and 1.2134 (Oct 17 low) and below that at 1.2097 (daily S1).