GBP/USD: dropped and steadied below 1.35 on a 'one and done' consensus

Currently, GBP/USD is trading at 1.3494, down -0.72% on the day, having posted a daily high at 1.3620 and low at 1.3465.

GBP/USD was unable to hold onto the 1.35 handle in a heavily oversubscribed market on the right-hand side, (ASK),  where even the black cabby drivers (and Uber drivers) were talking up sterling over the recent hawkishness from the BoE, (There is a saying in the market, that when the taxi driver says "buy", then its time to sell).

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The supply started in late Tokyo at 1.3618 highs after a clearance in sell stops around 1.36 the figure until late London lows held at 1.3533.  There was a pickup to 1.3569 on the NY handover ahead of BoE's Carney comments at the 2017 Michel Camdessus Central Banking Lecture at the IMF Headquarters in Washington DC who sees Brexit pushing up inflation and subsequently slowing growth, making for a consensus that a rate hike from the BoE might just be a "one and done" job in the month of November. 

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GBP/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that GBP/USD has a strong support now at 1.3440, in where the pair has the 38.2% retracement of the same rally, and a bullish 20 SMA in the 4 hours chart. "In the same chart, technical indicators head sharply lower within positive territory, correcting extreme overbought readings, and supporting additional slides on a break below the mentioned Fibonacci support," Valeria noted.