GBP/USD steadies above 1.6700 after drop

FXStreet (Córdoba) - The GBP/USD extended its pullback from a 2-month high and fell to 3-day lows Friday as risk aversion and disappointing UK construction data weighed on the pound.

The GBP/USD triggered stops on the break of 1.6760/50 and slid to a low of 1.6715 before bouncing and stabilizing in a slim range. At time of writing, the GBP/USD is trading at 1.6732, recording a 0.3% loss on the day, having retreated from a high of 1.6819 scored yesterday.

GBP/USD technical outlook

Valeria Bednarik, chief analyst at FXStreet, notes the GBP/USD maintains a bearish tone in short-term charts. "The picture remains slightly bearish intraday, with a break below the daily low favoring an extension of the bearish correction down to 1.6660", the analyst said. She locates immediate support levels at1.6720, 1.6660 and 1.6625, while resistances are seen at 1.6755, 1.6820 and 1.6860.

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The US Dollar wasn't able to reach the 1.1000 level against its Canadian counterpart as its bullish movement from 1.0915 was capped at 1.0980 where the pair found resistance.
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