GBP / USD drops to 1.3805, keeping the day slower to start
After reaching a key level of 1.3900, which has been limited by profits for the past two weeks, there has been a bit of a setback and the dollar’s resilience only adds as the price now returns to 1.3800 in a relatively volatile week.
The 1.3800 level offers some short-term support, but below it the next support closer to the swing area is about 1.3750-60. The July 2 low of @ 1.3731 is key, which can be viewed during a downturn as it can accelerate.
Below that, the 200-day moving average @ 1.3686 has come into play.
These are key technical levels to keep an eye on when we see a drop below 1.3800 in upcoming sessions.
More broadly, the BOE has been slow to normalize policy, but while Saunders’ remarks yesterday were a start and have been implemented, the pound may find more reason to take a higher step.
This means that the keyword in this section is if of course.