GBP/USD failed to extend the rebound beyond 1.2700

The Sterling keeps the upbeat momentum so far today despite GBP/USD has now retreated from earlier tops beyond 1.2700 the figure to the current 1.2780/70 band.

GBP/USD found support below 1.2600

Cable’s initial decline found respite in levels just below the 1.2600 handle after buyers quickly turned up following hawkish comments by BoE’s A.Haldane, rendering the Queen’s Speech a ‘non-event’.

Clearly opposed to the recent dovish stance from Governor M.Carney, (former dove) Andy Haldane caught markets off guards earlier today after he suggested that it would be prudent to remove part of the current accommodative stance in monetary conditions relatively soon, adding that the BoE faces risks if it tightens its policy at a later stage (rather than sooner).

The pair gained over a cent from fresh 2-month lows near 1.2590 to daily highs in levels above the key 1.2700 handle. Despite the correction higher, the weekly performance of Cable so far stays within the negative territory, reverting last week’s advance.

GBP/USD levels to consider

As of writing the pair is up 0.36% at 1.2675 facing the next resistance at 1.2710 (spike Jun.21) seconded by 1.2757 (high Jun.20) and finally 1.2811 (55-day sma). On the downside, a breakdown of 1.2603 (low Jun.20) would open the door to 1.2555 (200-day sma) and finally 1.2362 (low Apr.10).