GBP/USD bounces off weekly lows, still weaker around 1.2600 handle

The GBP/USD pair remained well offered for second consecutive day and dropped below 1.2600 handle, albeit has managed to pull-back around 25-pips from session low.

Currently hovering around 1.2600 region, the pair touched a fresh weekly low during early European session after UK Industrial and Manufacturing Production data fell short of consensus estimates and unexpectedly contracted in October by 1.3% and 0.9%, respectively. 

Today's disappointing UK economic data added on to the selling pressure in wake of resurgent greenback demand, which remains underpinned on growing expectations of higher US interest rates, beyond December meeting. 

Later during NA trading session, US JOLTs Job Openings data is due for release from the US and might provide some impetus for short-term traders. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes,  "in the 4 hours chart, the price has accelerated below a now horizontal 20 SMA, while technical indicators head sharply lower within negative territory. Furthermore, the pair has broken below the 38.2% retracement of the latest bullish run at 1.2625, the immediate resistance. A recovery above this last will deny a bearish continuation for today, and favor a recovery up to 1.2660, but seems quite unlikely at this point."

She further writes, "The 50% retracement of the same rally stands at 1.2580, the immediate support, with a break below it opening doors for a continued slide down to the 1.2530 region."