Breaking: GBP/USD breaks below 1.2500, lowest since January - levels

Yohay Elam FXStreet

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.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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