GBP/USD: clear risks to the downside, targetting 1.2100

Currently, GBP/USD is trading at 1.2347, down -0.40% on the day, having posted a daily high at 1.2418 and low at 1.2312.

GBPUSD is making a minor recovery in the US shift having opened lower within the 14th Dec and FOMC bear trend from the 1.2720's. Analysts at Scotiabank argued that there are clear risk of easing further towards 1.21/1.22 in the next few days. "Trend oscillators are aligned bearishly for the GBP across a range of short, medium and longer-term timeframes which implies ongoing downward pressure on spot and limited scope for GBP rebounds from here. Look to sell rallies through the low 1.24s."

US dollar to react asymmetrically to data after FOMC meeting - Commerzbank

GBP/USD levels

Spot is presently trading at 1.2348, and next resistance can be seen at 1.2355 (Yesterday's Low), 1.2372 (Hourly 20 EMA), 1.2397 (Daily Open), 1.2397 (Monthly Low) and 1.2397 (Weekly Low). Next support to the downside can be found at 1.2333 (Daily Classic S1), 1.2329 (Weekly Classic S1), 1.2312 (Daily Low), 1.2270 (Daily Classic S2) and 1.2184 (Daily Classic S3).