GBP/USD recovery stalled around 1.2440 ahead of data

The Sterling is shedding more than 1% vs. its American peer on Friday, with GBP/USD managing to regain the 1.2400 handle after the abrupt slump overnight.

GBP/USD in 3-decade lows, looks to data, NFP

Extremely volatile session for the pair so far, dropping violently to the 1.1840 region in early trade and recovering to the current 1.2430/40 band afterwards.

(Fat finger? and/or) comments by France’s F.Hollande suggesting the UK must suffer the consequences of leaving the European Union have triggered a sharp and unexpected slump in GBP, dragging spot to print fresh lows in levels seen over three decades ago.

Today’s UK docket includes Industrial and Manufacturing Production for the month of August, Trade Balance figures and the NIESR GDP Estimate, although results appear initially to remain as mere statistics against the current backdrop of swelling GBP vulnerability and growing concerns over Brexit implications.

Across the pond, the sentiment around the greenback is poised to pick up pace in light of the release of September’s Non-farm Payrolls and speeches by FOMC’s S.Fischer, L.Mester and E.George.

GBP/USD levels to consider

As of writing the pair is losing 1.41% at 1.2439 with the next support at 1.1841 (low Oct.7). On the flip side, a breakout of 1.2772 (high Oct.5) would expose 1.2920 (near term resistance line) and finally 1.2972 (20-day sma).