GBP/USD makes fresh 3-decade lows

GBP/USD dropped further on Thursday and struck fresh 3-decade lows at the beginning of the New York session, as the pound remains vulnerable amid Brexit-related concerns, while the dollar trades firmer versus most competitors.

GBP/USD took out yesterday’s lows and bottomed out at 1.2632 in recent dealings. Cable continues to challenge lows and it was last trading at 1.2635, recording a 0.86% loss on the day, having fallen five out of the six last trading days.

On the data front, main focus remains on nonfarm payrolls report to be published on Friday. In the meantime, US reported initial jobless claims dropped to 249K last week, below 256K expected.

GBP/USD technical levels

In terms of technical levels, next supports are seen at 1.2600 (psychological level) and then 1.2500 (psychological level). On the flip side, resistances are seen at 1.2770 (Oct 5 high), 1.2859 (Oct 4 high), 1.2886 (10-day SMA).