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GBP/USD consolidates below 1.6000

FXStreet (Edinburgh) - The sell off remains intact around the sterling towards the end of the trading week, dragging GBP/USD to print fresh ytd lows in the 1.5970/65 band.

GBP/USD weaker ahead of the BoE

Spot is navigating levels last seen in mid-November 2013 well below the psychological handle at 1.6000, amidst an unabated USD rally. Very auspicious Payrolls in the US economy today followed by a better-than-expected gauge of the services sector added legs to the USD upside in detriment of the risk-associated universe. Interesting week ahead in the data front for GBP, as industrial/manufacturing measures will precede the BoE monetary policy meeting, all amidst several housing sector gauges and ending with the trade balance figures. It seems that any upside in the pair would be capped by the ongoing USD strength unless the BoE surprises the markets next Thursday, although that seems pretty unlikely so far.

GBP/USD levels to consider

At the moment the pair is losing 1.07% at 1.5970 facing the next support at 1.5953 (low Oct.3) ahead of 1.5879 (low Nov.13 2013) and finally 1.5854 (low Nov. 12 2013). On the upside, a break above 1.6011 (200-w MA) would aim for 1.6052 (low Sep.10) and then 1.6159 (hourly high Oct.3).

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