GBP/USD still weak, keeps 1.3500 on Carney

• Cable briefly tested fresh lows in sub-1.3500 area post-BoE.
• MPC members voted 7-2 to keep rates at 0.50% today.
• BoE’s IR revised lower its 2018 GDP to 1.4% from 1.8%.

The British Pound remains under pressure so far today as Carney’s press conference is under way, with GBP/USD volatile albeit keeping the 1.3500 milestone for the time being.

GBP/USD daily gains capped above 1.3600

Cable is prolonging the sideline theme above 1.3500 the figure today, showing signs of increased volatility following the recent steady stance from the Bank of England and vigilant on Carney’s press conference.

Governor M.Carney noted the underlying growth remains resilient and sees Q1 slowdown as temporary. Carney also said that the labour market is ‘reassuringly strong’.

Regarding Brexit, Carney noted its drag on the economy is persistent rather than intensifying, while he believes the economic momentum is going to reassert.

Furthermore, Carney suggested households should  focus on the likeliness that rates would raise to a limited and gradual extent.

GBP/USD levels to consider

As of writing, the pair is losing 0.22% at 1.3518 facing the next support at 1.3487 (low May 4) seconded by 1.3457 (2018 low Jan.11) and finally 1.3400 (psychological level). On the upside, a break above 1.3818 (10-day sma) would aim for 1.3658 (2017 high Sep.20) and then 1.3712 (low Mar.1).