- The dollar remains strong despite economic data below expectations.
- The pound enters the worst performers on Thursday in the G10.
- GBP/USD heading for the sixth consecutive daily decline, accumulating a loss of 600 pips.
GBP/USD could not find a respite and resumed its declines. The pair fell to 1.2419 marking a new low since June 2020, even despite weaker-than-expected US data.
The pound is under pressure, due to the collapse of the GBP/USD and in a cautious climate in the financial markets. It is among the worst performing coins in the G10 space. The EUR/GBP recently broke above 0.8450.
The dollar for its part remains firm. It was learned that the US economy contracted in the first quarter at a rate of 1.4%, which was surprising since an expansion of 1% was expected. This made the dollar fall momentarily, only to gain momentum later. The US Dollar Index (DXY) is up 0.70% and is at 103.70; it previously reached as high as 103.92, a level last seen in 2002.
If the downside extends below 1.2420, GBP/USD’s next support can be seen at the 1.2400 zone and then 1.2365 (April 2017 minimum). To the upside, the 1.2475/80 area is now immediate resistance.
Technical levels
Source: Fx Street
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