GBP/USD extends correction

FXStreet (Córdoba) - The GBP/USD extends a downward correction from 2-month highs during the American session in quiet trading.

The GBP/USD peaked at 1.6819 during the Asian session, stalling just 2 pips shy of its 2014 high, and it has continued to move south at a slow pace throughout the day, with the Bank of England decision to keep policy unchanged having virtually no impact on the pound. Having hit a daily low at 1.6754, the GBP/USD is down -0.15% on the day and presently trading at 1.6768.

GBP/USD technical outlook

Technically, short term charts are gaining a bearish tone although the dominant trend remains bullish, said Valeria Bednarik, chief analyst at FXStreet, supporting a downward corrective movement towards 1.6720 strong static support area. "Corrective movements may extend down to 1.6660, but the dominant bullish change will hardly be affected; on the other hand, a break above 1.6820 high should trigger further gains, eyeing 1.6880 in the short term".

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