GBP/USD: 'May' the fade be with you, target 1.3000

GBP/USD has seen some set-backs while the hype over May being selected as Prime Minister has been a fade and the pound has dropped from the highs of 1.3326 and has made recent lows of 1.3128.

As explained by Valeria Bednarik, chief analyst at FXStreet, "May is no rush to trigger the article 50, but she said that she will honor the referendum's result. Attention now shifts to the upcoming BOE's meeting this Thursday".

The BoE is the major event for the week, and Valeria Bednarik offers a preview here, noting that "Mark Carney is expected to offer a dovish stance, and the focus will likely be on his wording."

GBP/USD levels

"In the 1 hour chart, the price is now well below a bearish 20 SMA, whilst the technical indicators maintain their bearish slopes near oversold readings. In the 4 hours chart, indicators retreated from overbought levels, but remain within positive territory, whilst the 20 SMA has lost upward potential, but remains below the current level, now at 1.3100," explained Valeria. Meanwhile, until we can get above the early July channel resistance, 1.3340, the bears are in charge and focus is back on the 1.2800 psychological level and 1.2794 lows on a break of 1.3000.