GBP/USD moves toward July’s lows

GBP/USD came under renewed pressure on Monday and broke below the 1.29 mark, as it continues to approach to 31-year lows scored early July.

Cable is on track to post its eighth loss over the last nine trading days, after being rejected from the 1.3370 area earlier this month. GBP/USD bottomed out at 1.2864 on Monday and it was last trading at 1.2874, 0.28% lower on the day.

On August 4th, the BoE cut the main rate to a fresh record low of 0.25% and expanded the QE programme by £60 billion to £435 billion, fueling GBP's decline.

GBP/USD technical levels

In terms of technical levels, next supports are seen at 1.2849 (July 11 low), 1.2795 (31-year low, Jul 6) and and 1.2700 (psychological level). On the other hand, resistances are seen at 1.2944 (Aug 15 high), 1.3033 (Aug 12 high) and 1.3063 (10-day SMA).