Daily GBPUSD chart
A technical move is removing the pound on the first real trading day of 2025.
2024 was not a good year for the pound but it mostly held up against the US dollar due to the hawkish stance of the Bank of England compared to other developed central market banks.
But it's not exactly gangbusters for growth in the UK and today we are seeing some serious movements driven by the flow out of the pound. Technicals are a big part of the equation with a break of the Nov-Dec levels near 1.2475 leading to stops and a rush to the exits.
At last glance, we are down 100 pips from that level, partly due to broad USD strength but also a matter of a particularly weak pound.
The 2024 intraday low as 1.2299 which is the main support level now.
After the US economic data, I think the most important numbers in the world are to watch out of the UK because we will see some variation on these numbers.
