GBP/USD keeps falling, testing 1.3150

The downside pressure around the Sterling remains everything but abated today, with GBP/USD hovering over fresh lows in the mid-1.3100s.

GBP/USD weaker ahead of BoE

Spot met extra selling interest during the European afternoon, trading on a weaker note after briefly testing fresh 2-week lows in the 1.3140/35 band before some buying interest lifted back to the 1.3150/60 band.

Mixed results from the UK’s labour market today added to lower-than-expected inflation figures during August, all prompting the pair to retreat for the second session in a row ahead of the key BoE meeting due tomorrow.

Prior surveys expect the ‘Old Lady’ to keep its monetary stance unchanged, with the refi rate at 0.25% and the asset purchase facility at £435 billion.

GBP/USD levels to consider

As of writing the pair is retreating 0.25% at 1.3159 facing the next support at 1.3139 (support line off July’s top) followed by 1.3056 (low Aug.29) and finally 1.2863 (low Aug.15). On the flip side, a breakout of 1.3447 (high Sep.6) would aim for1.3481 (high Jul.15) and then 1.3646 (38.2% of the post-Brexit down move).