GBP/USD challenges lows near 1.3280

The demand for the British pound remains subdued on Friday, with GBP/USD testing the lower bound of the range in the 1.3280/60 band.

GBP/USD weaker post-Carney

The pair has come under extra selling pressure after Governor M.Carney opened the door for further easing over the summer via rate cuts, increasing the assets purchase facility or a combination of both. Carney’s comments re-ignited fears of the potential consequences of the recent Brexit vote, both in the UK and the euro area.

Spot has thus eroded the recent advance to the 1.3530 area, resuming the downside and once again exposing 3-decade lows in the 1.3120 region.

Data wise in the UK calendar, June’s manufacturing PMI is expected to ease a tad below the 50 threshold, while the ISM Manufacturing will take centre stage in the US docket.

GBP/USD levels to consider

As of writing the pair is losing 0.32% at 1.3281 and a break below 1.3224 (post-Brexit low Jun.24) would open the door to 1.3118 (2016 low Jun.27). On the upside, the next hurdle aligns at 1.3533 (high Jun.29) followed by 1.3833 (previous 2016 low Feb.29) and finally 1.4004 (low Apr.6).