GBP/USD breaking lower to test 5-DMA, BOE FSR eyed

Having failed to resist above 1.25 handle yet again in the overnight trades, the GBP/USD is seen extending the retreat a fresh buying interest seen behind the US dollar against its major peers.

GBP/USD capped below 1.2500

The bid tone behind the US dollar keeps growing bigger in the mid-Asian trades, knocking-off GBP/USD further into negative territory in a bid to test the 5-DMA support located at 1.2468.

The US dollar caught a fresh bid-wave against its main competitors as the US treasury yields look to stabilize, alongside oil prices ahead of the OPEC decision due later on Wednesday.

Meanwhile, the major will be highly influenced by the UK’s banks stress results and BOE Financial Stability Report (FSR) due later in the European session.

While a flurry of US economic releases due on the cards in the NA session will also have a significant impact on the USD price-action, and in turn on the cable.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2497/1.2500 (daily high/ round number), 1.2533 (Nov 28 high) and 1.2550 (daily R1). While supports are seen at 1.2447 (10-DMA) and 1.2375 (50-DMA) and below that at 1.2357 (Nov 23 low).