GBP/USD falls below 1.2400

GBP/USD continued to fall during the New York session and made fresh 3-week lows sub-1.2400 over the last minuted.

Cable broke below the 50-day SMA and stretched to a low of 1.2380, last seen Nov 23. The pair continues to trade near lows, weighed by a broadly stronger US dollar, presently at 1.2387, 1.36% down on the day.

Earlier on the day, the Bank of England decided by unanimous vote to leave the Bank Rate at 0.25% and to keep the QE programme at £435 billion as expected.

On Wednesday, the Fed decided to raise rates to 0.5-0.75%. While the move was highly anticipated, the dollar strengthened as the dot plot showed most members expect three hikes throughout 2017 versus two hikes seen in September’s meeting.

GBP/USD technical levels

In terms of technical levels, next supports are seen at 1.2359 (Nov 23 low), 1.2300 (psychological level/Nov 18 low) and 1.2219 (Nov 19 low). On the flip side, resistances could be found at 1.2567 (Dec 15 high), 1.2615 (10-day SMA) and 1.2750 (100-day SMA).