GBP/USD breaks decisively below 1.2600

GBP/USD accelerated losses and broke below the 1.26 mark and the 10-day SMA to hit fresh weekly lows in the 1.2550 area amid broad USD strength.

The greenback picked up pace across the board after the ECB announcement that its tapering the QE amount but extending its duration in time, with GBP/USD striking a low of 1.2549 in recent dealings. At time of writing, Cable is trading at 1.2552, down 0.54% on the day.

Adding to USD strength, data showed US weekly jobless claims fell 10,000 to 258k for week ended Dec. 2, dragging the pair further into negative territory and putting Cable on track for a third consecutive day of losses.

GBP/USD levels to consider

In terms of technical levels, immediate supports could be found at 1.2516 (21-day SMA), 1.2500/1.2499 (psychological level/Dec 1 low) and 1.2429 (50-day SMA). On the other hand, resistances are seen at 1.2703 (Dec 8 high), 1.2773/79 (Dec 6 high/100-day SMA) and 1.2859 (Oct 4 high).