“¢ A modest USD pull-back helps rebound over 50-pips from lows.
“¢ UK government paper on no-deal does little to influence the move.
The GBP/USD pair quickly recovered around 50-pips from session lows albeit struggled to build on the momentum beyond the 1.2900 handle.
The pair managed to reverse the last hour dip to an intraday low level of 1.2849 and the latest leg of quickly upsurge was solely led by a modest US Dollar pull-back from highs. With trade and political worries still in focus, the USD held on to its daily gains, albeit struggled to build on the positive momentum and was seen as one of the key factors lending some support to the major.
In the latest Brexit-related news, the UK government published the first batch of technical notices advising businesses and the public on how to prepare for the possibility of a no-deal Brexit. The publications, however, did little to influence the price action, with the USD price dynamics turning out to be an exclusive driver of the pair’s momentum through the mid-European session on Thursday.
It would now be interesting to see if the pair is able to regain positive traction or continues with the struggle to sustain its strength above the 1.2900 handle in absence of any relevant market-moving economic releases.
Technical levels to watch
Weakness below mid-1.2800s is likely to find support near the 1.2830-25 region ahead of the 1.2800 round figure mark, below which the pair is likely to accelerate the slide towards 1.2760 horizontal support. On the flip side, the 1.2900-10 region might continue to act as an immediate resistance, which if cleared could assist the pair to aim towards its next major hurdle near the 1.2975-80 region.
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