GBP/USD depressed around 1.2540 on USD strength

The Sterling is following south the rest of the risk-associated assets at the beginning of the week, sending GBP/USD to the current 1.2540/445 band.

GBP/USD retreats from 1.2670

Spot is trading on a bearish fashion on Monday, shedding over a cent since Friday’s tops in the 1.2670/75 area in response to a continuation of the solid demand for the greenback, accentuated after Trump’s victory.

The pair attempted to break above the consolidative theme that prevailed since early October, although gains appear so far limited around last week’s peaks in the vicinity of 1.2680. Cable remains supported, however, by the area near 1.2080, which held bearish attempts in past sessions.

Chinese Industrial Production and Retail Sales have come in below expectations during October, adding to the selling bias in the riskier assets.

No data releases scheduled today in the UK docket, while Inflation Report Hearings and October’s CPI figures will be the salient points on Tuesday.

GBP/USD levels to consider

As of writing the pair is losing 0.43% at 1.2539 facing the next support at 1.2510 (hourly support Nov.14) followed by 1.2351 (20-day sma) and finally 1.2349 (low Nov.9). On the flip side, a breakout of 1.2675 (high Nov.11) would aim for 1.2699 (55-day sma) and then 1.2796 (low Jul.6).