GBP/USD headed for its sixth monthly loss in a row

GBP/USD has been trading in a 250-pip range over the last days after the Oct 7 incident which saw the pair losing several big figures in a matter of minutes.

Even though GBP/USD has managed to kind of stabilizing above 1.2050 and below 1.2350, fundamental factors continue to favor the downside, amid divergent monetary policy outlooks and concerns over a hard Brexit.

Trading around 1.2150 at the moment, GBP/USD is headed to post its sixth monthly decline in a row, having fallen over 2800 pips from June highs above 1.5000.

GBP/USD levels to consider

As for technical levels, next supports are seen at 1.2113 (Oct 28 low), 1.2081 (Oct 25 low) and 1.2000 (psychological level). On the other hand, resistances could be found at 1.2270 (Oct 27 high) and 1.2297/1.2300 (Oct 20 high/psychological level) and 1.2330/34 (Oct 19 high/20-day SMA).