GBP/USD holds near daily lows, under 1.3350 after BoE hearing

GBP/USD remains around daily lows amid a stronger US dollar and a weak pound, following the Inflation Report hearings at the UK Parliament and a correction of the greenback. The pair still holds above 1.3330 but remains under pressure.

Monetary Policy Committee members singled that the UK economy is a bit stronger than what the BoE forecast after the Brexit referendum. They also noted that the door to more stimulus is wide open in case more is needed to boost the economy.

Cable is retreating today on the back of a stronger dollar, the BoE hearing, and UK manufacturing data. The decline represents so far a correction after rising during the previous five days, when GBP/USD rose from 1.3070 to 1.3445 (Sep 6), the highest level since mid-July.

Technical levels

Currently, the pair trades at 1.3335, down 0.77% for the day. Support levels could be seen at 1.3330 (daily low), 1.3285 (Sep 05 low) and 1.3250 (Sep 02 low). On the opposite direction, resistance could be located at 1.3385 (20-hour moving average), 1.3400 (psychological) and 1.3445 (Sep 06 high).