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GBP/USD refreshed 4-month low, and may not stop

FXStreet (Moscow) - GBP/USD opened the day at 1.6688, and continued to edge lower posting 4-month low at 1.6669, and trading just above 1.6670 at the moment.

Life without hope

Now the pound lives without hope and without fuel for the rise. All tests were failed, and Mr Carney told the market explicitly that there are no reasons to hurry up with rate hikes given the ‘heightened uncertainty’ about the slack in the British economy, and in wages and productivity in particular. No wonder the pair failed to recover even on worse than expected US data, and, moreover, the slide down may resume again. However, there is possibility the bottom is not far away from here, as the pair may just return to the levels when everything started – when the market started to price in the possibility of earlier than expected rate hike. If we take mid April as the starting point of this process, the bottom may lie not lower than 1.6660.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6740, with support below at 1.6633, 1.6579 and 1.6472 with resistance above at 1.6794, 1.6901, and 1.6955. Hourly RSI is bearish at 31, while hourly Moving Averages are largely bearish, with the 200SMA bearish at 1.6811, and the daily 20EMA bearish at 1.6889.

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