GBP/USD Outlook: Sterling Falls Further on Risk Aversion, Downbeat UK GDP Data
Cable dips to one-month low in early Monday, in extension of Friday’s post-US CPI 1.4% drop.
Risk aversion dominates at the start of the week and deflates sterling, while dollar was boosted by continuous rise in US inflation which reached new highest in four decades in May.
Unexpectedly weak UK GDP figure for April, added to pound’s negative near-term outlook.
Rising negative momentum on daily chart and moving averages in full bearish configuration, support the action which pressures round-figure 1.22 support, the last obstacle on the way towards.
key support at 1.2155 (2022 low), violation of which would confirm full retracement of 1.2155/1.2667 corrective upleg and risk extension towards next key levels at 1.2080/00 (Fibo 76.4% of larger 1.1409/1.4249 Mar 2020/May 2021 rally / psychological).
Res: 1.2276; 1.2324; 1.2350; 1.2413.
Sup: 1.2200; 1.2155; 1.2100; 1.2080.
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