GBP/USD drops sharply below 1.2500 as DXY hits yearly tops

The US dollar is seen accelerating sharply across the board, knocking-off GBP/USD sharply below 1.25 handle.

GBP/USD ignores risk-on

The cable brought an end to its 3-day winning streak and came under aggressive selling pressure amid persistent demand for the greenback, underpinned by relentless rise in the US treasury yields. The USD index jumps above 100 marker for the first time since Dec 2015, recording a 1% gains on the day.

Amid a lack of fundamental drivers from the UK docket, focus will solely remain on the USD and treasuries price-action, which almost killed the demand for sterling as an alternative higher-yielding asset.

GBP/USD Levels to consider            

At 1.2478, the pair finds immediate resistances placed at 1.2500 (zero figure), 1.2550 (psychological levels) and 1.2581 (daily high). While supports are lined up at 1.2400 (round figure) and 1.2373 (Nov 10 low) and below that at 1.2349 (Nov 9 low).

To learn more about this topic, check our video analysis