GBP/USD testing weekly lows around 1.6840

FXStreet (Edinburgh) - The pound is now sharpening its depreciation against the greenback on Tuesday, dragging the GBP/USD to visit weekly lows in the mid-1.68s.

GBP/USD eyes on UK data

The pair is eroding yesterday’s gains and therefore extending the correction lower from multi-year peaks in levels just shy of 1.7000 the figure in early May. Next of note for GBP traders will be tomorrow’s key employment data in the UK economy. Consensus expects the jobless rate to tick a tad lower to 6.8% in the three months ended in March from 6.9%, and the Claimant count to drop by 30.0K in April. The crucial BoE’s Quarterly Inflation Report will follow, with new projections for GDP and inflation in the British economy. “we might see 1.65/1.66 at some stage, if this move lower closes below 1.6775 and continues over the next few weeks”, suggested Paul Robson, Senior FX Strategist at RBS.

GBP/USD levels to watch

As of writing the pair is losing 0.12% at 1.6845 with the next support at 1.6832 (low May 9) ahead of 1.6821 (low May 2) and then 1.6805 (low Apr.30). On the upside, a break above 1.6903 (high May 12) would open the door to 1.6939 (high May 9) and finally 1.6975 (high May 8).

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