GBP/USD tumbles to lows near 1.2580

The Sterling is now suffering the pick up in the demand of the greenback, dragging GBP/USD to fresh daily lows in the 1.2585/80 band.

GBP/USD weaker on USD buying

The pair shed around a cent after climbing as high as the 1.2680 area in early trade following the renewed buying interest surrounding the buck during in the European afternoon.

GBP met increasing selling pressure and prompted the ongoing correction lower in spot despite preliminary GDP figures for the fourth quarter have come in above expectations, showing the economy is now seen expanding at an annualized 2.2% and 0.6% QoQ.

Despite the leg lower, the pair stays on its way to close its second consecutive session with gains, including fresh 6-week tops at today’s peak in the 1.2670/75 band.

Later in the session, USD will take centre stage in light of the releases of US Initial Claims, Trade Balance figures, New Home Sales and Markit’s Services PMI.

GBP/USD levels to consider

As of writing the pair is losing 0.39% at 1.2586 and a breakdown of 1.2507 (100-day sma) would open the door to 1.2488 (low Jan.25) and finally 1.2420 (55-day sma). On the other side, the next hurdle aligns at 1.2673 (high Jan.26) followed by 1.2729 (high Dec.13) and then 1.2776 (high Dec.6).

AG Markets Review