“¢ UK political/Brexit uncertainties continue to weigh on the British Pound.
“¢ A modest USD pullback fails to inspire the bulls or ease the bearish pressure.
Selling bias around the British Pound picked up the pace in the last hour, with the GBP/USD pair sliding back below the 1.2600 handle and hitting fresh multi-month lows.
Persistent Brexit/UK political uncertainty continues to dent sentiment surrounding the British Pound, with the pair showing no signs of bearish exhaustion despite a modest US Dollar pullback.
The global flight to safety led to a free fall in the US Treasury bond yields on Friday and exerted some downward pressure on the greenback, albeit did little to impress the bulls or lend any support to the major.
The US President Donald Trump’s unexpected announcement to slap a 5% tariff on all goods coming from Mexico triggered a fresh wave of global risk-aversion trade and boosted demand for traditional safe-haven assets.
Meanwhile, given that a pro-Brexit hardliner Boris Johnson is the leading candidate and is gathering momentum to be the new PM, the pair seems unlikely to find any reprieve and continue with its recent bearish trajectory.
Later during the early North-American session, the US economic docket – highlighting the release of the core PCE price index, will now be looked upon for some meaningful trading opportunities on the last day of the week.
Technical levels to watch
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