GBP/USD weaker, pierces 1.2800

Pablo Piovano FXStreet

The selling pressure around the Sterling remains everything but abated today, forcing GBP/USD to retreat to fresh lows in sub-1.2800 levels.

GBP/USD down on USD-bids, UK polls

Cable came under strong and renewed selling pressure at the end of the week in response to a persistent buying interest around the buck and latest UK elections poll results.

In fact, recent YouGov poll results saw the Conservative party still leading the vote intentions vs. the Labour Party, although the gap has significantly narrowed from previous weeks.

Additionally, the bid tone around the greenback has gathered further pace today after the second revision of US GDP now sees the economy expanding more than expected at an annualized 1.2% vs. 0.9% initially forecasted.

Further US data saw the Reuters/Michigan index at 97.1, coming in short of the preliminary print albeit a tad higher than April’s reading.

Spot retreated to the boundaries of the critical 1.2800 support, levels last seen in late April, and remains poised to close the week in the red territory, reverting the previous advance.

GBP/USD levels to consider

As of writing the pair is losing 1.14% at 1.2797 facing the next support at 1.2758 (low Apr.21) followed by 1.2685 (55-day sma) and then 1.2593 (200-day sma). On the flip side, a breakout of 1.3036 (high May 23) would aim for 1.3051 (2017 high May 18) and finally 1.3125 (high Sep.22 2016).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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