GBP/USD corrects lower, but stays above 1.4600

By FXStreet The overnight retreat in the GBP/USD pair from near 1.4650 levels stalled just ahead of 1.46 handle, with the major now hovering in the negative territory above the last.

GBP/USD: Eyes Brexit news

Currently, GBP/USD drops -0.14% to 1.4615, reversing a brief dip to 1.4604, session lows. The cable eases-off three-day highs and now consolidates in the red zone, correcting a minor portion of the extensive rally seen in the previous session.

The GBP/USD pair rallied a day before after BOE Carney in his testimony before the Treasury Select Committee noted that the central bank was confident that it could achieve the monetary policy target irrespective of the outcome from EU referendum, while also adding Brexit could weaken sterling, creating an upside shock to inflation that would make it harder to keep interest rates low.

Moreover, improved CBI retail sales figures combined with the latest Brexit polls showing votes in favour of the Remain camp, also collaborated to the upside in the major. Meanwhile, amid a data-empty UK docket, markets will monitor latest developments surrounding Brexit issue and oil-price action for fresh incentives.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4642/66 (May 24 & 19 high), above which 1.4700 …read more

Source:: FX Street