GBP/USD Sellers in control, challenges 1.3170

The selling pressure behind the GBP/USD pair remains intact as we head into early Europe, with the bears now awaiting fresh impetus for the next push lower.

GBP/USD eyes US data

Currently, GBP/USD drops -0.16% to trade around 1.3175 levels, unable to hold above 1.32 handle. The cable faces double whammy from a broadly higher US dollar on one hand, while resumption of decline in the oil prices weighs on the pound on the other side. Meanwhile, the USD index now gains +0.12% to 94.61 levels, while both crude benchmarks drop nearly 1%.

Nothing of relevance from the UK docket today as well, except for the BBA mortgage approvals data, and hence, focus remains on the US existing home sales data, especially after yesterday stronger new home sales figures.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3200/02 (round number/ daily high), above which 1.3232 (daily R1) would be tested. On the flip side, support is seen at 1.3150 (psychological levels) below that at 1.3134/29 (50 & 5-DMA).