GBP/USD rejected above 1.2900, tumbles to 5-week lows

GPB/USD dropped again toward weekly lows after being unable, one more time, to hold above 1.2900. The pound is the worst performer among the most traded European currencies, affected by risk aversion. In Wall Street, the Dow Jones is falling 0.38%, at the lowest in three weeks. 

The pair was steady en hovering around 1.2880 and dropped quickly to the 1.2840 area. It reached a fresh daily low at 1.2835. It slide below previous weekly lows hitting the lowest since July 12. 

The area around 1.2840 is a key short-term support and a break lower could open the doors to a more pronounce negative sentiment around the pound. On the opposite direction, cable needs a consolidation on top of 1.2900 in order to be able to build a recovery. 

Another week lower 

At the moment, the pair trades at 1.2854, near the lows, headed toward the third weekly decline in a row. GBP/USD continues to slide after rising above 1.3200 late in July. 

Expectations about a rate hike from the Bank of England dropped significantly following the last meeting and weakened the pound that failed to continue to rally above 1.3200. The change of the tone from the BoE and risk aversion affected the pound. 

Price is below the 20-week moving average that stands 1.2850/60. Cable could post the first weekly close under that line since April.