GBP/USD turns intraday negative

FXStreet (Córdoba) - The GBP/USD extended losses to a fresh 1-week low during the European session after disappointing UK mortgage data put the pound under pressure.

The GBP/USD fell more than 70 pips within the last hours as lower-than-expected UK mortgage approvals fell more than expected in April, sending the pound to a low of 1.6811 in recent dealings. At time of writing, the GBP/USD is trading at 1.6830, now 0.07% below its opening price, having been as high as 1.6881 at one stage.

GBP/USD technical outlook

Valeria Bednarik, chief analyst at FXStreet notes that the GBP/USD holds a neutral short-term tone, with the 1.6800/10 offering immediate support with a break lower pointing to further losses. “Immediate short term target comes around 1.6760/70 area, in route to 1.6731, May 15th low”, said the analyst.

“Immediate resistance comes at 1.6840, followed by mentioned daily high (1.6881) now converging with a short term descendant trend line. Only above this latter the pair will be able to change course, pretty unlikely at the moment”.

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