GBP/USD drops further below 1.3200

The Sterling is now rapidly losing momentum, dragging GBP/USD to fresh lows near 1.3180.

GBP/USD lower on USD buying

The pair is deepening its weekly decline to the 1.3185/80 band today, opening the door for a potential test of weekly lows near 1.3130 (Wednesday) following a swelling buying interest around the US dollar.

Further news from the BoE showed Governor M.Carney saying the central bank has been supporting wages and jobs following the Brexit vote, while MPC Forbes suggested the lower GBP is adjusting the UK’s current account.

Ahead in the session, US inflation figures tracked by the CPI and the Reuters/Michigan index are due across the pond, leaving the focus of attention on the buck.

GBP/USD levels to consider

As of writing the pair is retreating 0.51% at 1.3173 facing the next support at 1.3124 (support line off July’s top) followed by 1.3056 (low Aug.29) and finally 1.2863 (low Aug.15). On the other hand, a breakout of 1.3447 (high Sep.6) would aim for 1.3481 (high Jul.15) and then 1.3646 (38.2% of the post-Brexit down move).