GBP/USD testing lows near 1.2400, UK Autumn Forecast in focus

The GBP/USD pair stalled its minor-recovery ahead of hourly 100-SMA near 1.2420 region, and dropped back to test 1.24 handle amid a cautious tone prevalent in the markets.

GBP/USD offered above hourly 100-SMA

The major extends its bearish consolidation phase into early European trading as bulls remain at bay, in response to recent broad based US dollar strength, with markets pricing-in a Dec Fed rate hike.

While the pound also remains under pressure on the back of resurgence of Brexit-process related concerns as well as in anticipation of the highly influential UK Treasury’s Autumn Forecast Statement, which is expected to unveil a bleak economic outlook for the British economy.

The spot is last seen exchanging hands at 1.2407, meandering near daily low struck at 1.2403 last hour, down -0.14% so far.

Besides, the Autumn Forecast statement, markets will also look forward to the speech from BOE MPC member Forbes, US economic releases and FOMC minutes due on the cards later today.

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).

To learn more about this topic, check our video analysis