GBP/USD testing daily lows near 1.2160

The Sterling remains on the defensive so far this week, taking GBP/USD to the 1.2160/50 band ahead of the opening bell in Europe.

GBP/USD supported near 1.2080

The pair has come under renewed and strong downside pressure as of late, quickly breaking below the key down barrier at 1.2100 the figure on Tuesday albeit finding strong support in the 1.2080 area once again.

In fact, the strong greenback and comments by Chancellor P.Hammond advocating for extra QE have weighed on GBP.

In addition, and at his speech before the House of Lords yesterday, Governor M.Carney said the recent drop in Sterling obeyed to market perceptions of the potential unfold of Brexit discussions rather than monetary policy.

GBP/USD levels to consider

As of writing the pair is losing 0.21% at 1.2165 facing the immediate support at 1.2086 (low Oct.11) followed by 1.1450 (low post-‘flash crash’ Oct.7). On the other hand, a break above 1.2327 (high Oct.18) would expose 1.2377 (high Oct.11) and finally 1.2415 (20-day sma).