Breaking: GBP/USD breaks below 1.2500, lowest since January - levels
|GBP/USD has fallen to new lows below 1.2500 and below the June trough of 1.2505. It is trading at the lowest since January.
Pound/dollar has suffered dismal forward-looking purchasing managers' indices during the week – figures that raise the chances of a recession. Mark Carney, Governor of the Bank of England, has warned of a "sea change" in the global economy that the bank will have to respond to.
The final straw came from the US Non-Farm Payrolls report which has shown an increase of 224K jobs – diminishing the chances of a long-term easing cycle by the Federal Reserve. The greenback has soared across the board after the upbeat publication that surprised markets.
The next levels to watch are 1.2475 which was a stubborn support line back in December 2018 and 1.2445, the 2019 trough, which cable fell to in a flash crash in early January.
Further down, we are back to levels last seen in 2017. These include 1.2360 and 1.2250. Resistance awaits at 1.2558 and 1.2605.
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