GBP/USD extends losses on Clinton-led USD strength

The GBP/USD pair is facing aggressive selling pressure as we head into early Europe, sending the rate closer towards 1.24 handle.

GBP/USD down almost 100-pips from Friday close

The cable is seen extending its bearish opening gap and now meets fresh supply as the European traders hit their desk and react to the latest US elections-related reports, citing that the FBI cleared Clinton’s emails cases.

The Clinton’s FBI clearance news sent the US treasury yields sharply higher and hence, crushed the demand for the GBP as an alternative higher-yielding asset. While persistent broad based US dollar weakness also exacerbates the pain in the major. GBP/USD now trades -0.69% lower at 1.2431, having hit fresh daily lows at 1.2424 last minutes.

The GBP/USD pair is seen reversing last week’s a slightly hawkish BOE and UK court ruling driven strong gains, as main risk event for the spot remains the US elections due later this week.

GBP/USD Levels to consider            

The pair finds immediate resistances placed at 1.2500 (round number), 1.2559 (multi-week highs) and 1.2626 (pre-flash crash highs). While supports are lined up at 1.2400 (round figure) and 1.2350 (psychological levels) and below that at 1.2325 (10-DMA).

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