GBP/USD challenges 2-week lows

GBP/USD fell sharply on Friday, extending losses into a fifth consecutive day, as hopes of a rate hike by the Fed continue to underpin the greenback.

GBP/USD lost more than 120 pips from daily highs and bottomed out at a 2-week low of 1.2309. Despite a bounce attempt, Cable remains under pressure in an environment of broad USD strength. At time of writing, the pair is trading at 1.2315, down 2.28% on the day and on track to post a 0.73% weekly loss.

There were no major UK or US data releases today, but BoE Deputy Governor Broadbent remarked that the central bank would not sacrifice jobs or wages to counter inflation.

GBP/USD levels to watch

As for technical levels, next supports are seen at 1.2309 (Nov 18 low), 1.2295 (Nov 3 low) and 1.2219 (Nov 2 low). On the other hand, resistances could be found at 1.2444 (10-day SMA), 1.2578 (50-day SMA) and 1.2591 (Nov 14 high).

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