GBP/USD turns negative below 1.2400

The British pound is now losing the grip amidst a pick up in the greenback, with GBP/USD slipping back to sub-1.2400 levels.

GBP/USD now looks to US elections

Spot has faded the earlier spike to daily highs around 1.2440, coming down to the vicinity of 1.2390 in response to a better tone around the buck as US elections have kicked off.

Mixed results from UK’s Industrial Production and Manufacturing Production failed to spark any reaction in GBP, which remains more concerned over the ongoing debate between a ‘soft’ or a ‘hard’ Brexit.

As US elections are under way, JOLTs Jobs Openings and the speech by Chicago Fed C.Evans (2017 voter, dovish) are due next across the pond. Back to the UK, NIESR GDP Estimate is expected to show a 0.3% expansion on the three months ended in October, while MPC A.Haldane is due to speak.

GBP/USD levels to consider

As of writing the pair is losing 0.05% at 1.2389 and a break below 1.2290 (20-day sma) would open the door to 1.2086 (low Oct.11) and finally 1.1450 (low post-‘flash crash’ Oct.7). On the upside, the initial hurdle lines up at 1.2559 (high Nov.4) followed by 1.2742 (55-day sma) and then 1.2945 (100-day sma).

To learn more about this topic, check our video analysis: