GBP/USD challenging lows near 1.2540

The British Pound is extending its correction lower from recent tops vs. the greenback, now dragging GBP/USD to the area of daily lows near 1.2540.

GBP/USD weaker ahead of US data, Trump/May meeting

The pair is retreating for the second consecutive session so far after being rejected from yesterday’s fresh 6-week tops around 1.2680.

The strong pick up in the demand for the US dollar has prompted the current knee-jerk in the risk-associated assets, although Cable stays well on its way to close its second straight week with gains, always supported by auspicious results in the UK economy and alleviated risks of a ‘hard Brexit’ scenario.

Looking ahead, UK’s PM Theresa May will meet President Donald Trump later today, with a trade deal between the two countries on top of the agenda.

Data wise in the US docket, Durable Goods Orders, advanced Q4 GDP and Consumer Sentiment are all due.

GBP/USD levels to consider

As of writing the pair is losing 0.39% at 1.2550 and a break below 1.2499 (100-day sma) would aim for 1.2488 (low Jan.25) and finally 1.2417 (55-day sma). On the flip side, the immediate support aligns at 1.2680 (high Jan.26) followed by 1.2729 (high Dec.13) and then 1.2776 (high Dec.6).