GBP/USD accelerates decline below 1.3150, eyes last week lows

• Slide gains speed below strong support at 1.3155/60
• EUR/GBP rally weighs on GBP
• US bond yields boosts USD 

Cable broke below 1.3150 and dropped to 1.3111, reaching the lowest since last Friday. The pair remains under pressure, near 1.3100 and looking at last week lows. 

GBP/USD between a higher EUR/GBP and a strong USD 

The greenback remains strong supported by US bond yields. The 10-year yield rose above 2.40% to the highest since March. Economic data added support to the US dollar with the PMI. The composite flash rose above exportations to monthly highs. Regarding data, the next key report will come from the UK with the Q3 GDP reading tomorrow. 

GBP/USD tested yesterday’s highs near the 1.3220 area in Asian hours and then turned to the downside. It has been moving with a bearish bias and accelerated below 1.3156 (Oct 23 low). It bottomed recently at 1.3111. Cable still appears under pressure and is likely to remain that way as long as it holds below 1.3160.  

The pound continues to be affected by Brexit uncertainties overall and today also from a rally in EUR/GBP that is rising 70 pips. The euro is among the top performers in the market ahead of Thursday’s European Central Bank meeting. 

Technical levels to watch

As of writing, the pair is falling 0.60% at 1.3119, with FXStreet's technical confluence indicator identifying immediate support around 1.3115, then a weak level at 1.3080, followed by 1.3060 (100-SMA in daily chart). On the other hand, the immediate resistance is seen at 1.3130 and then at 1.3160 (Oct 23 low) and 1.3180.