GBP/USD at fresh 1-month lows, eyes 1.2900

GBP/USD continued to decline after making a sharp reversal and reached a fresh 1-month low as it continues  to approach 1.2900.

Dramatic change

The pair soared after the release of weak US economic data, hitting 1.3034 but since then it has fallen more than a hundred pips. Initially, it pulled back to the level it had before the economic release and then it continue to slide weakened by a recovery of the US dollar across the board but also amid a decline of the pound in the market. EUR/GBP is trading at 3-year highs above 0.8600.

GBP/USD broke below 1.2930/35 (Aug 11 & 12 low) and fell to 1.2912. The pair remains under pressure trading around the lows as stocks in Wall Street drop further and while the US dollar continues to trim losses across the board.

Technical levels

On the downside, immediate support could be seen around the 1.2900 handle, followed by 1.2845/50 (July 7 low) and 1.2790 (July 5 low). On the opposite direction, resistance might now be seen at 1.2935 (Aug 11 & 12 low), 1.3000 and 1.3030/35 (daily high).