GBP/USD plummets to lows near 1.4160 ahead of BoE

The sterling is now losing the grip, sending GBP/USD to the area of fresh daily lows in the 1.4165/60 band.

GBP/USD focus on UK data

The pair is retracing yesterday’s advance to levels above the 1.4200 barrier following recent polls showing the ‘Leave’ vote remains on the lead.

In addition, GBP is coming under extra selling pressure following the sharp drop of GBP/JPY in response to a steady stance from the Bank of Japan at today’s meeting.

Ahead in the session UK’s Retail Sales for the month of May are due followed by the BoE interest rate decision. Market consensus expects sales to have expanded at a monthly pace of 0.3%, while the ‘Old Lady’ is seen ‘on hold’ once again.

GBP/USD levels to consider

As of writing the pair is retreating 0.30% at 1.4165 and a break below 1.4091 (low Jun.14) would aim for 1.4088 (low Apr.14) and then 1.4004 (low Apr.6). On the other hand, the next resistance aligns at 1.4351 (100-day sma) followed by 1.4408 (55-day sma) and finally 1.4452 (20-day sma).