GBP/USD finds support near 1.2360

The Sterling remains on the defensive at the beginning of the week, with GBP/USD finding some decent support in the 1.2370.60 band for the time being.

GBP/USD still weak after ‘flash crash’

Following Friday’s GBP ‘flash crash’, which sent the pair to fresh lows in the 1.1840 region, the British pound is now attempting to consolidate (or at least not shed further ground) around the 1.2400 handle vs. the greenback, although risks around ‘Brexit’ continue to linger and promise to be a crucial driver for spot in the next months.

Ahead in the week, the focus of attention should remain on domestic fundamentals and USD-dynamics amidst a very light docket in the UK economy.

On the positioning side, GBP speculative shorts/net shorts have climbed to record levels during the week ended on October 4 according to the latest CFTC report, adding to GBP vulnerability.

GBP/USD levels to consider

As of writing the pair is losing 0.27% at 1.2403 with the next support at 1.1841 (low Oct.7). On the flip side, a breakout of 1.2772 (high Oct.5) would expose 1.2887 (20-day sma) and then 1.2952 (near term resistance line).