GBP/USD hits new multi-month low at 1.6563

FXStreet (Moscow) - GBP/USD is on the move; the pair dipped to new multi-month low at 1.6563 during Asian hours on the back of USD rally across the board.

Where is the floor?

GBP/USD ignored two dissenting votes in MPC and continued its free fall. The pair is poised to finish its seventh bearish week in a row due to shifting UK rate hikes expectations. The bearish sentiments intensified when GBP/USD failed to extend the upside beyond 1.6678 on the back of rather hawkish MPC minutes. Asian session brought no respite as a mixture of better USD sentiments and technical factors pressured GBP down. While there are no sighs of upcoming rebound on the charts yet, the cable is deeply oversold, and the market might use any pretext for profit taking. Later during the day UK retail sales numbers are published. Should it show some improvement, GBP/USD might pare losses and recover to the initial resistance of 1.6590/00. On the downside the next support is seen at 1.6540.

What price levels and patterns have to be considered?

Current price is 1.6568, with resistance ahead at 1.6590 (Yesterday's Low), 1.6595 (Daily Open), 1.6596 (Monthly Low), 1.6596 (Weekly Low) and 1.6602 (Daily High).

Support below can be found at 1.6564 (Daily Classic S1), 1.6564 (Daily Low), 1.6540 (Weekly Classic S2), 1.6532 (Daily Classic S2) and 1.6474 (Daily Classic S3).

Looking at price patterns, we can see a Doji 1-hour candlestick formation.