The British pound has resumed its bearish note at the end of the week, sending GBP/USD to the area of daily lows near 1.2120. GBP/USD vulnerable, still supported at 1.2080. GBP has quickly shrugged off the spike to the 1.2270 area following better-than-expected UK GDP figures during the third quarter published on Thursday, resuming the downside to today’s lows in the vicinity of 1.2120.
In the meantime, the outlook for the pair remains fragile amidst a strong greenback, uncertainty around a potential ‘hard Brexit’, and the future steps of the BoE. Regarding the latter, opinions among investors seem to lean towards an ‘on hold’ stance at next week’s meeting, especially in the current context of GBP weakness. Nothing scheduled data-wise in the UK calendar today, whereas advanced US GDP figures are expected to show the economy has expanded at an annualized 2.5% in Q3 along with the final print of the Reuters/Michigan index for the month of October.
As of writing the pair is retreating 0.19% at 1.2144 facing the immediate support at 1.2086 (low Oct.11) followed by 1.1450 (low post-‘flash crash’ Oct.7). On the other hand, a break above 1.2327 (high Oct.18) would expose 1.2338 (20-day sma) and finally 1.2377 (high Oct.11).