FxWirePro: GBP/USD dips below lower range, bearish bias increases

• GBP/USD slipped  below 1.2700 level on Thursday as U.S. currency's continued its relentless rise after data showed U.S. producer prices increased by the most in five months in November

• The producer price index for final demand rose 0.4% last month, the largest gain since June, following an upwardly revised 0.3% increase in October, according to the Labor Department's Bureau of Labor Statistics.

• A separate report from the Labor Department showed initial claims for state unemployment benefits rose by 17,000 to a seasonally adjusted 242,000 for the week ending Dec. 7.

• At GMT 1:42, Sterling was last down 0.40% on the dollar at 1.2700, its lowest since Dec 5th low

• Immediate resistance is located at 1.2752 (50%fib), any close above will push the pair towards 1.2789(61.8%fib).

•  Support is seen at 1.2678(38.2%fib) and break below could take the pair towards 1.2614(23.6%fib).

Recommendation: Good to sell around 1.2720, with stop loss of 1.2800 and target price of 1.2640