GBP/USD Price Analysis: Bears eye the 38.2% ratio on break below 38.2% ratio

• GBP/USD bears are moving in with eyes on the trendline support.
• Bears need to break 1.2050 lows to make way for the 38.2% ratio. 

GBP/USD is down on the day so far, losing 0.15%, with the price falling from a high of 1.2074 to a low of 1.2051 so far.

The sour tone of OBR forecasts has weighed on GBP in the spot market since the Autumn Statement and now the US Dollar is edging higher across the board in a risk-off start to the week.

The Greenback is correcting from multi-month lows on the prospects of the Federal Reserve moderating the pace of its policy tightening.

The following illustrates the prospects of a deeper correcting in cable that targets the trendline support as follows:

GBP/USD daily chart

Bears moved in at around 1.2150 and there are prospects of a deeper correction over the coming days with eyes to 1.1965, or a 38.2% ratio, and then the trendline support: