GBP/USD testing the downside further

FXStreet (Guatemala) - GBP/USD is trading at 1.7085, having posted a daily high at 1.7106 and low at 1.7084.

GBP/USD has breached the 20DMA here and is pressing lower in a heavy fashion and testing the Monday resistance and congestion zone as next target on the way down. The greenback has been supported this week while sterling has been punished on the back of the wages outlook for the UK and the disparity between that and the inflation report.

GBP/USD Levels

With spot trading below the 20DMA (1.7093) now, we can see next resistance zone ahead at 1.7094, 1.7106 (Daily High) and 1.7111 (Hourly 20 EMA). Support below can be found in1.7083 (Weekly Low) and 1.7080 (Daily 20 SMA). Below here, Danske Bank suggest supports at 1.7055 and 1.7007.

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