GBP/USD below 1.2900, consolidates weekly losses

The pound is about to end Friday on a weak note, losing ground across the board. GBP/USD is marginally lower for the day and down on a weekly basis for the first time after rising during the previous four weeks. 

Cable bottomed on Friday at 1.2843, the lowest level in a week and then bounced to the upside after the release of US economic data. The pair rose to 1.2890 and then pulled back modestly. During the last hours, it has been steady hovering around 1.2880.

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GBP affected by BoE

During the week, cable remains near the key 1.30 handle, it failed to break higher and ended correcting to the downside. The pound lost strength on Thursday after the Bank of England meeting and the Inflation Report, the tone and the projections were not as “hawkish” as market expected.

BoE: Keeps hawkish twist to neutral stance- Danske Bank

GBP/USD is about to post the second weekly decline since early March. The bearish correction so far has been limited and the uptrend holds intact. Cable needs to break 1.3000 in order to clear the way to more gains. 

To the downside, Valeria Bednarik, Chief Analyst at FXStreet, point out that a break below 1.2830 would expose the 1.2760/70 region. “A weekly close below this last will open doors for a steeper decline next in the next one, down to 1.2500.”