GBP/USD: Bears taking back charge, eyes 1.2625 ahead of UK data

• Risk-aversion, USD rebound drags the Cable towards 1.2625 NY lows.
• Upbeat UK final GDP estimates could revive the recent bullish momentum.
• All eyes on US data flow heading into pre-Christmas thin trading.

GBP/USD witnessed good two-way trading in Asia this Friday, now heading back towards the NY lows near 1.2625, as we progress towards the European opening bells.

The spot failed several recovery attempts near 1.2675 region, as the USD buyers returned amid an uptick in Treasury yields and risk-off action in the Asian equities. The US dollar staged a rebound across its main competitors, with the USD index testing into 96.50 from monthly lows of 96.17.

Moreover, the higher-yielding pound tends to suffer amid risk-off market profile while looming Brexit uncertainty continues to keep the rallies capped in GBP/USD. The UK PM Theresa is struggling hard to push her Brexit deal through the Parliament that increases the odds of a dis-orderly Brexit. Hence, in the face of Brexit woes, the Bank of England (BOE) maintained its status-quo on the monetary policy settings a day before.

Attention now turns towards the UK current account and final GDP data due on the cards later today at 0930 GMT for fresh trading impetus ahead of the US economic releases that include the durable goods, final GDP and UoM consumer sentiment.

GBP/USD Technical Levels