“¢ A modest USD retracement helps to bounce off 11-month lows.
“¢ No-deal Brexit concerns keep a lid on any meaningful up-move.
The GBP/USD pair struggled to build on its late Asian session uptick and was now seen oscillating in a narrow trading band, just above mid-1.2900s.
The US Dollar erased a major part of the previous session’s strong gains and was seen as one of the key factors easing the prevalent bearish pressure surrounding the major. The pair staged a modest rebound from eleven-month lows and touched an intraday day high level of 1.2974.
The uptick, however, lacked any strong follow-through and remained capped below the key 1.30 psychological mark amid growing prospect of a no-deal Brexit, especially after the UK trade minister Liam Fox ascribed a 60% chance of no deal.
With the GBP bulls still on the defensive, absent market moving economic releases seems unlikely to provide any meaningful impetus and assist the pair to register any meaningful recovery. Hence, it would be prudent to wait for a strong follow-through buying before positioning for any further up-move.
Technical Analysis
The recovery move stalled ahead of 61.8% Fibonacci retracement level of the overnight slide and the pair now seems to have formed a bearish double-top on the 15-minute chart.
With technical indicators on the mentioned chart starting to lose positive momentum, a follow-through slide back below 38.2% Fibonacci retracement level would reinforce the bearish formation and turn the pair vulnerable to resume with its prior depreciating move.
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