“¢ Brexit uncertainties continue to dent the sentiment surrounding the British Pound.
“¢ Risk-off mood benefits USD’s relative safe-haven status and prompts fresh selling.
“¢ Investors now eye the release of advance US GDP growth figures for fresh impetus.
The GBP/USD pair finally broke down of its daily consolidation phase and weakened farther below the 1.2800 handle to hit fresh multi-week lows.
The bearish pressure remained unabated for the third consecutive session, with the pair now lost around 300-pips from the vicinity of the 1.3100 handle touched at the beginning of this week.
Against the backdrop of persistent Brexit uncertainties, the prevalent bullish sentiment surrounding the US Dollar turned out to be one of the key factors exerting downward pressure on the major.
The greenback was seen benefitting from the global flight to safety amid a fresh wave of risk-aversion trade, as depicted by a meltdown in equities and the ongoing slide in the US Treasury bond yields.
Despite the bearish tone, the downside, so far, has been limited as traders now seemed reluctant to place aggressive bets ahead of the release of the advance US Q3 GDP growth figures.
The US economic growth is anticipated to have moderated to 3.3% annualized pace during the third-quarter of 2018 from a growth of 4.2% recorded in the previous quarter. Any significant divergence from the expected numbers might infuse additional volatility and produce some meaningful trading opportunities.
Technical levels to watch
Any follow-through weakness is likely to find support near the 1.2740-35 area, below which the pair is likely to accelerate the fall towards the 1.2700 handle en-route YTD lows, around the 1.2765-60 region.
On the flip side, immediate resistance is now pegged near the 1.2740-45 region, which if cleared might trigger a short-covering bounce, even beyond the 1.2800 handle, towards the 1.2825-30 supply zone.
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