GBP/USD drops to test Tuesday’s low ahead of Autumn Forecast

The GBP/USD pair failed to sustain above 1.24 handle and fell sharply to hit fresh daily lows, as the greenback resumes its bullish momentum against its main competitors.

GBP/USD rejected once again near hourly 100-SMA

The major is on a declining path over the last two trading sessions, as the US dollar regained lost footing and now looks to test multi-year highs reached against a basket of six major currencies, as a Dec Fed rate is almost certain now, especially after last week’s comments from the Fed Chair Yellen.

The immediate focus now remains on the much-awaited UK Treasury’s Autumn Forecast Statement and BOE member Forbes speech. While the US durable goods and new homes sales data due later in the NA session, is likely to have limited impact on the major, as the main risk event for today remains the FOMC minutes.

The spot is last seen exchanging hands at 1.2393, moving slightly away from session lows of 1.2382, still down -0.25% on the day.

GBP/USD Levels to consider            

At 1.2420, the pair finds immediate resistances placed at 1.2434/37 (50 & 10-DMA), 1.2499 (daily R1) and 1.2514 (Nov 21 & 22 high). While supports are lined up at 1.2381 (Nov 22 low) and 1.2366 (daily S1) and below that at 1.2308 (Nov 21 low).

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