GBP/USD tumbles to lows near 1.2150

The offered bias around the Sterling has now gathered extra steam, sending GBP/USD to the area of daily lows in the 1.2150/40 band.

GBP/USD weaker post-US releases

Spot met further selling pressure after US data releases saw inflation figures measured by headline PCE rising 1.2% on a year to September vs. August’s 1.0% rise. In addition Core PCE rose at an annualized 1.7%.

Furthermore, US Personal Spending has surpassed estimates rising at a monthly 0.5% during last month, while Personal Income rose 0.3%, missing consensus.

Previously, UK’s M4 Money Supply has contracted 0.4% inter-month in September, while Mortgage Approvals increased to 62.93K during the same period and BoE’s Consumer Credit dropped to £1.405 billion.

In the meantime, the pair remains sidelined above the key support are at 1.2080/90 for the time being, against a backdrop of USD-buying and rising uncertainty on Carney’s future and the likeliness of a ‘hard-Brexit’ scenario.

In addition, GBP speculative net shorts remained at record levels during the week ended on October 25, although they have retreated to 5-week lows while open Interest has climbed to the highest level since mid-March, all according to the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is losing 0.25% at 1.2162 facing the immediate support at 1.2086 (low Oct.11) followed by 1.1450 (low post-‘flash crash’ Oct.7). On the other hand, a break above 1.2280 (20-day sma) would aim for 1.2327 (high Oct.18) and finally 1.2377 (high Oct.11).