GBP/USD reverses sharply to 1.2960 on BOE’s Haldane

The GBP/USD pair failed once again to sustain above 1.3000 levels and took a sharp U-turn, with the retreat accelerated by the BOE Chief Economist Haldane’s comments.

GBP/USD: Will its close above 1.2880 on daily basis?

The spot quickly faded a spike to fresh 2017 tops of 1.3007, as the pound was hit by a slight change in tone witnessed in the BOE policymaker Haldane’s remarks, as he noted that "For now we are happy with where the rates are, we need to be vigilant for what happens next". He also expressed his concerns over rising cost of living in the UK.

Further, a retreat in oil prices combined with stalled USD selling also collaborated to the latest leg down in GBP/USD. Markets now await the speech by the BOE Governor Carney and the key US final GDP data, which will help determine whether the spot would settle the day above 1.2880 levels – the breakout point, which would display a bullish break of the rounding bottom pattern on the daily sticks.

GBP/USD levels to consider             

To the upside, the immediate resistance is the 1.3013 (May 25 high) followed 1.3050 (psychological mark/ May tops) and then 1.3081 (daily classic R2/ Fib R3). On the downside, support could be located at 1.2903 (daily pivot), 1.2842 (5-DMA) and 1.2800 (zero figure).