GBP/USD drops sharply to 1.2380 as USD extends rebound

The USD bulls jumped back on the bids as we progress towards the mid-European session, sending GBP/USD sharply lower to hit fresh daily lows below 1.24 handle.

GBP/USD breaches 10-DMA support at 1.2388

The cable witnessed aggressive selling pressure last minutes, largely on the back of resumption of broad based US dollar rally, as renewed optimism on a Trump win continues to underpin the buck.

The major stalled its minor-recovery near 1.2450 region and eroded more than 60-pips to now hit fresh daily lows of 1.2380, down -0.22% from its opening price.

Moreover, fresh selling in oil prices coupled with a pause in the European stocks rally also collaborated to the downslide in the GBP/USD pair.

Amid a data-dry UK docket, risk-trends backed by a Trump win, continue to drive markets, as investors now await the US employment data and Fed official Bullard’s speech for fresh impetus.

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2414 (5-DMA), 1.2450 (psychological levels) and 1.2500 (round number). While supports are lined up at 1.2321 (daily pivot) and 1.2303 (20-DMA) and below that at 1.2250 (psychological levels).

To learn more about this topic, check our video analysis