GBP/USD drops further to test 10-DMA

The GBP/USD pair extends its losing streak into a third day today, with the bears now targeting 1.22 handle amid weaker oil prices and a broadly higher US dollar.

GBP/USD nears 10-DMA at 1.2220

The cable continues to remain under pressure as we head into early Europe, having faced strong offers just ahead of 5-DMA now located at 1.2250 at Tokyo-open.

The major extended its retreat into Europe as markets continue to favor the greenback amid risk-off market profile, after the Asian stocks fell back in the red zone in tandem with oil prices.

Focus now remains on the public sector net borrowings data from the UK docket and Fed speaks due later in the day.

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2260 (daily high), 1.2300 (Oct 20 high) and 1.2334 (Oct 19 high). While supports are lined up at 1.2220 (10-DMA) and 1.2206 (daily S2) and below that at 1.2173 (Oct 18 low).