GBP/USD regains 1.4400, still vulnerable

By FXStreet FXStreet (Córdoba) – GBP/USD recovered a few pips over the last hours after briefly falling below the 1.44 mark to score fresh daily lows.

GBP/USD slid to a low of 1.4379, but the decline stalled ahead of yesterday’s multi-year lows, and quickly climbed back above the 1.4400 level. At time of writing, GBP/USD is trading at 1.4417, still 0.20% below its opening price.

The pound has lost more than 300 pips so far this year, having closed lower 6 out of the past seven trading days, as concerns over a slower recovery in the UK and uncertainty surrounding a possible Brexit continue to weigh on the Sterling.

Tomorrow the Bank of England will decide on monetary policy, with market expecting the interest rate and the asset purchase programme to remain unchanged at 0.5% and £375 billion, respectively.

GBP/USD levels to watch

On the downside, next supports are seen at 1.4350/1.4345 (5 ½-year low, Jan 12/monthly low Jun 2010), 1.4300 (psychological level) and 1.4229 (monthly low May 2010). On the upside, short-term resistances could be faced at 1.4610 (10-day SMA), 1.4700 (psychological level) and 1.4756 (20-day SMA).
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Source:: FX Street