GBP/USD Forecast: pressuring weekly lows

The Pound grinds lower early London, nearing its weekly low against the greenback of 1.2951, as market's mood remains sour, with stocks down worldwide and high yielding assets advancing at multi-month highs. UK data released on Thursday was overall soft, adding to the Pound's negative tone, triggered last week by a dovish BOE. There were no relevant news coming from the UK this morning, with market's attention centered on upcoming US July inflation figures, expected modestly higher but still subdued.

From a technical point of view, the pair is bearish and with scope to extend its decline over the next hours, as in the 4 hours chart, a bearish 20 SMA keeps rejecting advances, now offering a dynamic resistance at 1.2990, while technical indicators remain within negative territory, gaining downward strength. Below 1.2950, the next intraday supports come at 1.2920 and 1.2870, while beyond the mentioned 1.2990, the next resistance comes at 1.3020, with an advance beyond this last being quite unlikely for today.

View live chart of the GBP/USD

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