“¢ Speculations of longer Brexit extension prompt some fresh selling on Thursday.
“¢ Upbeat US data provides a goodish boost to the USD and adds to the pressure.
The bid tone surrounding the greenback picked up the pace in the last hour and dragged the GBP/USD pair back closer to the 1.3100 round figure mark in the last hour.
The pair failed to capitalize on the early uptick and once again faced rejection just ahead of the 1.3200 round figure mark, despite the fact that the UK Parliament passed a bill to prevent no-deal Brexit and extend the fast approaching Brexit deadline.
With investors still waiting for any breakthrough in the negotiations between the UK PM Theresa May and Labour leader Jeremy Corbyn, firming expectations for a longer Brexit extension now seemed to exert some fresh pressure on the British Pound.
This coupled with some renewed US Dollar buying interest, further supported by data showing that the US initial jobless claims dropped to the lowest level since 1969, further collaborated to the pair’s latest leg of a downtick to fresh session lows.
With today’s downfall, the pair erased all of the previous session’s modest gains and also snapped three consecutive days of winning streak, indicating reemergence of selling pressure and prospects for a further intraday/near-term depreciating move.
Technical levels to watch
A follow-through selling has the potential to drag the pair further towards the 1.3045-40 intermediate support en-route the key 1.30 psychological mark. On the flip side, the 1.3150-55 region now seems to cap any immediate recovery attempt and is followed by a stiff resistance near the 1.3190-1.3200 region.
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