FxWirePro: GBP/USD outlook weaker on renewed downside pressure
The Sterling remained in strong bearish tone against dollar on Monday as investors worried a period of political uncertainty would further weaken an economy slowing sharply before the launch of talks on leaving the Europ…
The Sterling remained in strong bearish tone against dollar on Monday as investors worried a period of political uncertainty would further weaken an economy slowing sharply before the launch of talks on leaving the European Union next week.
The pound slid to its lowest for nearly two months on Friday after shock election results left Prime Minister Theresa May short of a parliamentary majority and facing calls to step down.
Investors' will now watch for readings on inflation, wage growth, unemployment, and retail sales this week - all of which will play into the Bank of England's stance on record-low UK interest rates due on Friday.
Currently, the currency pair is trading at 1.2672 levels, it is set to decline further towards 1.2600 and later 1.2550 levels in the short term.
To the upside, the strong resistance can be seen at 1.2772, a break above this level would expose to cable to next resistance level at 1.2833.
To the downside immediate support can be seen at 1.2649, a break below will open the door towards next level at 1.2600.
