GBP/USD dips further after weak UK data

GBP/USD outlook: Cable dips further after weak UK data, consolidation may precede fresh push lower

GBPUSD fell further on Friday, holding in red for the third consecutive day, driven by stronger dollar and additionally pressured by unexpectedly weak UK Oct GDP numbers. Fresh weakness tested support at 1.2618 (last week’s low / 100WMA) and pressure nearby Fibo support at 1.2610 (61.8% retracement of 1.2487/1.2811 upleg), where bears faced headwinds.

Near term action may pause for consolidation, before renewed attack at 1.2618/10 pivots, loss of which to open way towards next targets at 1.2563/40 (Fibo 76.4% / lower 20-d Bollinger band) and expose key short-term supports at 1.2500 / 1.2487 (psychological / Nov 22 low). Read more…

GBP/USD Forecast: Pound Sterling tests key support after weak UK data

After spending the first half of the week in a tight range, GBP/USD turned south and lost more than 0.5% on Thursday. The pair stays under pressure early Friday and trades below 1.2650.

The persistent US Dollar (USD) strength caused GBP/USD to decline sharply in the American session on Thursday. The US Bureau of Labor Statistics reported that the annual Producer Price Index rose by 3% in November. This reading followed October’s increase of 2.6% and surpassed the market expectation of 2.6%, lifting US Treasury bond yields and boosting the USD. Additionally, the USD benefited from the risk-averse market environment as Wall Street’s main indexes declined after the opening bell. Read more…