GBP/USD Forecast: headed towards 1.2700/20 region
|The GBP/USD pair broke through 1.2800 and settled a fresh 2-month low of 1.2791 early London, undermined by persistent Pound weakness. Stocks trade with a soft tone, with European indexes moving back and forth around their opening levels, as speculative interest is waiting for the upcoming Jackson Hole Symposium with the main focus on Yellen and Draghi's speeches. They are both expected to be cautious on upcoming monetary policy moves, but any hint could trigger big movements in the financial world.
A stronger EUR, triggering a rally in the EUR/GBP towards 0.9200 helped sending the GBP/USD pair lower, despite dollar's demand is limited across the board.
Now trading a few pips above 1.2800, the pair maintains a bearish stance according to intraday technical readings, with the 4 hours chart showing that the price is well below a bearish 20 SMA whilst technical indicators turned further south within negative territory.
Below the mentioned daily low, the next short term support comes at 1.2750, en route to 1.2700/20 region where the pair has a strong static support area. The immediate resistance is now 1.2840, with gains beyond the level favoring an approach to the 1.2900 region, where selling interest will likely return.
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