GBPUSD drops to 11-month lows amid broad US dollar strength

GBPUSD drops to 11-month lows amid broad US dollar strength
The US dollar continues to surge higher amid rising US yields, pushing the dollar index toward 97.00, the highest since July 2020, making the greenback stronger against its major peers.
At the time of writing, the GBPUSD pair was down 0.4%, trading at around 1.33450, the lowest price since November 2020.

The UK manufacturing PMI for November improved to 58.2, up from 57.8 in October earlier in the day. At the same time, the services PMI decelerated slightly to 58.6 from 59.1 previously. However, the numbers had no impact on the Pound as it remained depressed by the dominating US dollar.

As long as the GBPUSD pair trades below the major resistance of 1.36, the medium-term outlook seems bearish. The short-term time frame also looks negative, with more robust selling zones at 1.35 and 1.3420. Rallies to these levels are expected to be sold.

 On the downside, the next target for bears will likely be at 1.32, where December 2020 lows are. 

Shorter time frames are starting to look oversold, possibly leading to a slight bounce toward the mentioned selling zones. Nevertheless, the outlook appears bearish for the near future.

GBPUSD daily chart 2 PM CET
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