GBP/USD stabilizes above 1.2950 after hitting 1-month lows

GBP/USD broke decisively below the 1.30 mark and accelerated toward fresh 1-month as the pound remains driven by EU negotiations and prospects of further monetary stimulus in the UK.

Cable fell to its lowest level in over a month at 1.2953 but managed to stabilize over the last couple of hours, ignoring the latest string of US data. At time of writing, GBP/USD was trading at 1.2962, recording a 0.5% loss on Tuesday.

Data showed US housing starts and building permits both fell in August, missing market expectations.

Concerns over a “hard” Brexit in the light of EU negotiations are fueling the decline as investors await the Fed decision tomorrow.

GBP/USD technical levels

As for technical levels, immediate supports are seen at 1.2900 (psychological level), 1.2864 (Aug 15 low) and 1.2796 (Jul 6 low). On the other hand, next resistances could be found at 1.3068 (Sep 20 high), 1.3090 (Sep 19 high) and 1.3159 (50-day SMA).