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GBP/USD drops near 1.5200

FXStreet (Edinburgh) - After a brief dip to the vicinity of the 1.5200 handle, GBP/USD recovered the 1.5220 area although it remains in the red territory.

GBP/USD eroding gains

Spot is giving away part of last week’s important upside above the 1.5200 mark, bolstered by the steadiness around the BoE and a positive PMI from the Services sector in the UK. However, the pair will remain in the spotlight ahead of the critical BoE’s Quarterly Inflation Report due on Thursday and less relevant industrial and manufacturing releases on Tuesday.

From the positioning space, speculative GBP net shorts were trimmed a tad in the week ended on February 3rd, pointing to an extension of the consolidative pattern seen in the last weeks.

GBP/USD relevant levels

The pair is now losing 0.11% at 1.5219 and a breakdown of 1.5200 (psychological level) would open the door to 1.5170 (low Feb.5) and then 1.5169 (10-d MA). On the flip side, the next hurdle lines up at 1.5295 (40-d MA) followed by 1.5353 (high Feb.6) and then 1.5355 (high Jan.5).

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