The pair GPB/USD dropped back towards lows week after being unable once again to hold above 1.2900.
The pound is the worst among the european currencies most traded, affected by risk aversion. On Wall Street, the Dow Jones is falling 0.38%, the lowest in three weeks.
The couple remained at around 1.2880, and fell quickly to the area 1.2840. Reached a new daily minimum at 1.2835. Moves underneath the minimum weekly earlier, reaching the lowest level since July 12.
The area around 1.2840 is a key support to the short-term and a break lower could open the doors to a negative sentiment more pronounced around the pound. In the opposite direction, the cable needs a consolidation above 1.2900 to be able to build a recovery.
Another week lower
For the moment, the pair is trading at 1.2854, near the lows, headed toward the third weekly decline in a row. The pair GBP/USD continues to fall after overcoming the 1.3200 at the end of July.
Expectations about a rate hike by the bank of England dropped significantly after the last meeting and weakened the pound that he couldn’t continue the meeting on 1.3200.
The change of the tone of the BoE, and risk aversion affected the pound. The price is below the moving average of 20 weeks that is of 1.2850/60. The cable could publish the first weekly closing below that line since April.