GBP/USD extends slide to 1.2985 on BOE’s Shafik

The GBP/USD pair reversed the recovery mode and came under fresh selling over the last hour, as the GBP slumped on BOE Shafik’s jawboning.

GBP/USD eyes US data and Yellen

Currently, GBP/USD trades -0.26% lower at 1.2988, hovering within a striking distance of session lows struck at 1.2984 last minutes. The cable failed to sustain above 1.30 handle, and now dives deeper in the red after BOE deputy governor Shafik said more stimulus will be required ‘at some point.’ She also added that the central bank could also expand its asset purchase program.

Meanwhile, the risk currency GBP also ignored a rally in the European stocks and higher oil prices, as dovish comments from the BOE official weigh heavily on the pound. Looking ahead, focus remains on the US durable goods data and a slew of Fed speaks due later in the NA session.

GBP/USD Levels to consider            

Carol Harmer, Founder at charmertradingacademy.com, noted, “Nothing seen as yet would say that Gbp/Usd has based in the medium term but we are looking quite good currently and therefore whilst this is the case it is safer to buy into weakness.....Our downside trend line evident in the 1.2930/20 area is still liable to catch the downside.....Now intra day support resides at 1.2980/70 and I am putting protective take profit stops in this area just because I do not want to see the market trade all the way back to where we bought it.....Stick with buying dips however as I do feel the next move will be to the topside, especially as the Euro/Gbp market has topped yesterday and still looking to be under pressure....”