The GBP/USD pair has to revisit the area of multi-week lows near 1.2330 on Thursday. This was due to the further strength in the greenback which weighs on the risk complex.
The pair retreats for the fourth session in a row and extends further the rejection from 2023 peaks near 1.2680 (May 10), an area also coincident with the 2021-2023 resistance line and the 100-week SMA.
In the meantime, recession concerns in the UK economy appear to have been reignited following sticky inflation figures in the UK during April ([published on May 24), which in turn seem to have reinforced the idea of extra tightening by the BoE in the upcoming MPC meetings.
As of writing, the pair is losing 0.21% at 1.2338 and faces the next support at 1.2283 (100-day SMA) seconded by 1.2274 (monthly low April 3) and finally 1.2010 (weekly low March 15).
On the other hand, the surpass of 1.2668 (2023 high May 8) would open the door to 1.2864 (200-week SMA) and then 1.3000 (psychological level).
Read– How Currency Pair Works in Forex
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