GBP/USD drops sharply towards 1.24 amid cross-driven weakness

The GBP/USD pair came under fresh selling pressure over the last hour, extending a break below 1.25 handle in a bid to test 10-DMA support located at 1.2430 levels.

GBP/USD down almost 1 big figure

The cable is seen extending its retreat from more-than one week highs, and now drops sharply towards 1.24 handle, losing almost 100-pips so far this session.

The renewed selling-wave in the major is mainly driven by fresh buying seen in the EUR/GBP cross, in wake of month-end flows as the German central bank buys EUR/GBP for its UK EU membership fees.

Moreover, resurgent demand for the greenback across the board also drags the GBP/USD pair lower. Meanwhile, the US dollar index jumps to 101.18, having finally broken its range-trade seen near 101 handle.

Focus now remains on the US GDP report due tomorrow, followed by Wednesday’s OPEC decision and Thursday’s BOE Financial Stability report and bank stress results for fresh incentives on the spot.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2532 (2-week highs), 1.2600 (round number) and 1.2675 (Nov high). While supports are seen at 1.2393 (50-DMA) and 1.2357 (Nov 23 low) and below that at 1.2308 (Nov 21 low).

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