The Sterling keeps the bearish fashion intact on Wednesday, sending GBP/USD to the area of daily lows near 1.2100 the figure.
GBP/USD now looks to the BoE
Spot has slipped back to the area of 3-month lows in sub-1.2100 levels earlier today following mixed results from the UK docket, where Industrial and Manufacturing Production have both beaten consensus in the month of November, although the trade deficit and Construction Output have come in on the soft side.
The current weakness around the pair has been also intensified following a pick up in the demand for the greenback ahead of the press conference by US president-elect Donald Trump, due later in the European evening.
In addition, GBP will remain in centre stage as BoE’s M.Carney will speak before the Treasury Select Committee Hearings ahead of the NIESR GDP Estimate for the fourth quarter.
GBP/USD levels to consider
As of writing the pair is retreating 0.48% at 1.2117 and a break below 1.2098 (low Jan.10) would open the door to 1.2081 (low Oct.28) and then 1.1450 (GBP ‘flash crash’ Oct.7). On the upside, the initial hurdle lines up at 1.2302 (20-day sma) followed by 1.2414 (55-day sma) and finally 1.2431 (high Jan.6).