GBP/USD hits fresh weekly lows near 1.2330
- US dollar gains momentum as equity prices turn lower in Wall Street.
- GPB/USD hit by risk aversion, ignores US data.
The GBP/USD pair broke below 1.2355 and dropped to 1.2333 reaching the lowest since April 24. As of writing it remains near the lows amid a stronger US dollar across the board.
The greenback is gaining against most of its rivals but among majors the yen is the best performer. A 20 million loss in US private payrolls report by ADP did not weigh on the US dollar. “We expect Friday's BLS report to be worse. Neither one should drive markets terribly much as it has been accepted that April data will be universally terrible. China is purportedly entertaining the idea of dropping its annual growth target. We see a host of implications from this”, mentioned TD Securities analysts.
In the United Kingdom, Prime Minister Boris Johnson announced that on Sunday will reveal the details of the next phase of the coronavirus strategy that will likely ease restrictions.
The GBP/USD stands near daily lows, under pressure as the Dow Jones falls 0.45% and the S&P 500 0.25%, after a positive opening. US yields are rising considerable on Monday, offering support to the dollar. The 10-year peaked at 0.74%, the highest since April 15.
Technical levels
The bearish tone intensified over the American session in the GBP/USD pair. The next support area is 1.2300/05 followed by 1.2245/50. On the upside, now 1.2400 is the immediate resistance. A consolation above 1.2450/55 is needed to alleviate the bearish pressure.