GBP/USD extends losses to near 1.3200 after Carney

GBP/USD fell sharply during the American afternoon and made fresh lows near 1.3200 after BoE Governor Mark Carney hinted at a rate cut “over the summer”.

On Monday, Cable scored a 31-year low of 1.3119 in the Brexit vote aftermath, but it managed to stage a decent bounce in the subsequent days, a bounce that has been almost completely reversed with GBP/USD falling to 1.3204 in recent dealings.

BoE Governor Mark Carney said Thursday he favors a rate cut “over the summer”, adding that an initial assessment of the economy would be made at the July meeting, and a "full assessment" alongside new forecasts for growth and inflation in August. Carney also noted the Monetary Policy Committee  could take any steps needed to support the financial system.

GBP/USD technical levels

In terms of technical levels, next supports could be found at 1.3119 (31-year low, Jun 27), 1.3100 and then 1.3000 (psychological levels). On the other hand, resistances are seen at 1.3493/1.3500 (Jun 30 high/psychological level) 1.3532 (Jun 29 high) and not much until 1.3835 (Feb 29 2016 low).