GBP/USD tumbles below 1.4100 on Carney’s comments

• Pound drops sharply on the back of comments from BoE Governor. 
• GBP/USD also under pressure on the back of a stronger US Dollar. 

Cable started to decline during the American session amid a rally of the US Dollar. It dropped even further following comments from Bank of England Governor Mark Carney. 

GBP/USD failed to hold above 1.4200 amid a stronger US Dollar that reacted to higher US yields while dropped under 1.4100 on the back of Carney’s comments. It bottomed at 1.4078 (lowest since Apr 9) and it was hovering around 1.4080, down a hundred pips for the day and headed toward the third slide in-a-row. 

BoE Governor spoke about higher rates in the years ahead but warned that Brexit uncertainty could delay the process. The overall tone did not sound “hawkish”. Those comments sent the pound sharply lower across the board. The currency hit fresh lows against most of its rivals and remains under pressure.

GBP/USD Technical levels 

Two days ago, cable hit the highest level in years at 1.4375. Since then lost almost three hundred pips and fell below the 20-day moving average (1.4140). Under 1.4100, the next key support might be seen at around 1.4060 (uptrend line from November) followed by 1.4000. To the upside, 1.4160 is the immediate resistance followed by 1.4195 and 1.4245 (Apr 19 high).