“¢ GBP fails to gain any meaningful traction despite the latest Brexit development.
“¢ A modest USD rebound from 2-week lows further collaborates to the weaker tone.
“¢ Traders now eye US economic data/Fed speakers for some short-term impetus.
The GBP/USD pair struggled to capitalize on its attempted intraday bounce and is currently placed near the lower end of its daily trading range, around the 1.3075-70 region.
Despite the latest development, wherein the EU offered a flexible Brexit deadline extension until Oct. 31, the British Pound failed to attract any meaningful buying interest and remained depressed amid concerns over the UK PM Theresa May’s ability to pass her Brexit deal through the British parliament.
This coupled with a modest US Dollar rebound from two-week lows, touched after the latest FOMC meeting minutes reinforced the central bank’s dovish tilt, exerted some additional downward pressure and further collaborated to the pair’s weaker tone through Thursday’s trading session.
The downside, however, remained cushioned, at least for the time being, as investors still seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines and look forward to the UK cross-party talks for some meaningful impetus.
Hence, it would be prudent to wait for a strong follow-through selling before confirming a bearish breakdown and positioning for any further depreciating move ahead of the US economic data and scheduled speeches by various Fed officials.
Technical levels to watch
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