GBP/USD attempting recovery, eyes key Fibo hurdle

GBP/USD is attempting a recovery following yesterday’s sharp losses, now trading just a few pips short of 1.3363 (50% Fibo extension of Nov 2007 high – Jan 2009 low – Jul 2014 high).

Eyes ECB rate decision

Action in the EUR/GBP pair post European Central Bank (ECB) rate decision due later today could influence Cable. The central bank is widely seen extending the maturity of its QE program to September 2017 from March 2017.

Despite the corrective move, the British Pound remains on the back foot given the BOE’s Carney expressed readiness to do more.

GBP/USD Technical Levels

The spot was last seen trading around 1.3350. A break above 1.3363 (50% Fibo extension) could yield a re-test of 1.34 (zero figure)- 1.3445 (Tuesday’s high). On the lower side, 1.33 could act as a support, which if breached would open doors for a slide to 1.3206 (June 30 low) and 1.3119 (June 27 low).