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GBP/USD challenges 1.6700

FXStreet (Edinburgh) - The sterling keeps giving ground on Wednesday, now dragging the GBP/USD to test the key 1.6700 support.

GBP/USD weaker post-BoE

The sterling is suffering the dovish tone struck by Governor M.Carney in today’s Quarterly Inflation Report by the Bank of England. The central banker crushed hopes of a rate hike later this year and asserted that the spare capacity is higher tan previously thought. “We remain comfortable with our forecast for a February 2015 start and see the risks even skewing now to May. No wages, no hiking”, commented Analysts Rich Kelly and Jacqui Douglas at TD Securities.

GBP/USD levels to consider

As of writing the pair is losing 0.62% at 1.6706 with the next support at 1.6699 (low Jun.4) followed by 1.6693 (low May 29) and then 1.6661 (200-d MA). On the upside, a break above 1.6850 (high Aug.13) and finally 1.6872 (high Aug.7).

GBP/JPY selling pressure - ForexTrading.TV

Petar Jacimovic, currency analyst at ForexTrading.TV, notes the GBP/JPY selling pressure with ultra high volume on the market.
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