GBP/USD – dips below 1.30 on McCafferty’s dovish comments

Offered tone around GBP strengthened on Bank of England’s Ian McCafferty’s dovish comments, pushing the GBP/USD pair to a session low of 1.2998 levels.

Offered at 1.3046

Cable was offered at 1.3046 earlier today after reports hit the wires that McCafferty called for a gradual approach by stating the bank will need to conserve ammunition to win the war. More comments hit the wires via Reuters which suggest the policymaker is in favor of rate cut close to zero and further increase in the QE program.

Due to McCafferty’s dovish talk, the spot now finds itself struggling to hold above 1.30 handle. It was last seen trading around 1.30 handle.

GBP/USD Technical Levels

Pair is at one-month low given sub 1.30 levels were last seen on July 12. Acceptance below 1.30 levels would open doors for a re-test of psychological level of 1.29, under which losses could be extended to 1.2789 (July 5 low). On the higher side, a break above 1.3046 (Asian session high) could yield a test of 5-DMA level of 1.3107. Gains above 5-DMA could run into resistance at 1.3206 (June 30 low).