GBP/USD faces double whammy, eyes 10-DMA

The bearish pressure accelerated on a breach of key support near 1.3075, knocking-off GBP/USD sharply in a bid to test Friday’s low.

GBP/USD: 1.3000 closer

Currently, GBP/USD drops -0.26% to 1.3041, meandering near session lows struck at 1.3035. The cable faced rejection below 1.31 handle and resumed the downside momentum in the Asian trades amid broad based US dollar advance and weaker oil prices, which posed a double whammy for the major.

Moreover, the US dollar gained across the board, mainly driven by the USD/JPY rally, while the oil prices weakened on downbeat oil rigs count data. Lower oil price dent markets’ appetite for risk assets such as equities, GBP, etc.

Nothing of note for the cable in the day ahead, and hence, attention turns towards the US macro news due for release tomorrow. While the main risk event for the major this week, remains the US GDP figures and Jackson Hole Symposium.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3138 (50-DMA), above which 1.3186 (2-week top) would be tested. On the flip side, support is seen at 1.3010 (10-DMA) below that at 1.2976 (Aug 17 low).