GBP/USD: Sellers in control, retests 1.2400

The GBP/USD pair failed to sustain a brief recovery seen in early Asia, and turned lower back near 1.24 handle, as risk sentiment deteriorated somewhat after markets witnessed an even second US election debate held earlier on the day.

Fed speaks, FOMC minutes and US retail sales eyed

The sellers once again fought back control post-China open, knocking-off GBP/USD from 1.2450 levels to post fresh daily lows just below 1.24 handle. The cable broke its overnight consolidative mode and jumped higher leading into the second US presidential election debate amid hopes of yet another Clinton win.

However, the hopes were squashed subsequently, after Trump improves his performance, defying odds for defeat in wake of his weekend’s vulgar remarks on women. This led to a renewed risk-off wave across the markets and weighed negatively on the higher-yielding currency GBP.

More so, the GBP/USD pair remains under pressure as the US dollar remains better bid across the board, after the Fed officials cheered the latest NFP report on Friday, noting that the Sept employment figures were solid and encouraging.

Meanwhile, Friday’s CFTC report showed that the GBP shorts increased by 10K in the week, showing GBP 98K short versus 88K short last week. The short of 98K was the largest short position on record. 

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2424 (daily pivot), 1.2447 (daily high) and 1.2500 (round number). While supports are lined up at 1.2350 (NY low)  and 1.2300 (psychological levels)