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GBP/USD struggling to hold opening gains so far today

Ahead of the US close on Friday, the GBP/USD hit a new low on the week at 1.2231. That low was just underneath the 1.2239 low set the day before, after the Bank of England decided to hold the base rate at 5.25%. The pound later closed the week at 1.2241. That was its lowest daily close since March 24. From a technical perspective it was not particularly positive either and once again the reader is reminded of an important level I flagged a while ago, at 1.2075. That is really the next support level of note from here on until the end of the month and the quarter, later this week. The close on Friday was also below its 50 week moving average (then at 1.2303). At the same time the pound can rebound, but the holding of the base rate last week and the strength of the dollar coming into the end of Q3 means it might have to fall further first. I will remind readers about that cyclical dollar strength in an update to follow. Meantime, the GBP/USD is just now trading at 1.2241 after an earlier modest opening session bounce to 1.2265 ran out of steam

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