GBP/USD keeps the area of daily lows near 1.2220

The Sterling continues to follow the broader bearish mood around the risk-associated assets, with GBP/USD navigating the lower bound of the range in the 1.2225/20 band.

GBP/USD weaker, USD remains bid

The pair is losing ground for the third straight session today, shedding over a cent since weekly peaks near 1.2340 and always following the solid demand for the greenback, especially after yesterday’s ECB meeting.

In the data space, UK’s Public Sector Net Borrowing has come in at £10.12 billion, above estimates at £8.2 billion. Further data saw Public Sector Net Cash Requirement rising to £13.28 billion during September vs. August’s nearly 0.73 billion.

In spite of the current decline, spot is managing to snap two consecutive weeks with losses - including a ‘flash crash’ to the 1.1450 area - finding decent support in the 1.2080 for the time being.

Nothing expected on the US data front, while speeches by FOMC’s D.Tarullo (permanent voter, hawkish) and San Francisco Fed J.Williams (2018 voter, neutral) would keep the focus in the buck.

GBP/USD levels to consider

As of writing the pair is losing 0.17% at 1.2233 facing the immediate support at 1.2086 (low Oct.11) ahead of 1.1450 (low post-‘flash crash’ Oct.7). On the other hand, a breakout of 1.2327 (high Oct.18) would aim for 1.2377 (high Oct.11) and finally 1.2536 (20-day sma).