GBP/USD drops below 1.2300 to 7-week lows

Matías Salord FXStreet

The pound weakened across the board during the last hours and pushed GBP/USD to break below 1.2300. Economic concerns for the next year, when the United Kingdom is expected to start the exit process from the European Union, weighed on the pound.

GBP/USD under 1.2300

Today the pair is falling for the fourth day in a row and for the eleventh time out of the last ten days. On Tuesday price approached 1.2300 but the rebounded. Today it moved toward that area after the release of US economic data.

During the American session, cable weakened and the price broke the 1.2300 area and fell to 1.2283, reaching the lowest level since November 2.

Technical levels

The pair is trading at 1.2285/87, down 0.56% for the day. To the upside, immediate resistance now could be seen at 1.2310 (Dec 20 low), 1.2340/45 (20-hour moving average) and 1.2390 (Dec 21 high).

On the downside, support levels might lie at 1.2280/85 (daily low), 1.2250 (Oct 24 high) and 1.2145/50 (November low).

GBPUSD Forecast 2017: Expect yet another murky year for Cable

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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