“¢ Brexit uncertainties continue exerting pressure for the third straight session.
“¢ Persistent USD buying adds to the selling bias and aggravates the downfall.
The GBP/USD pair continued losing ground for the third consecutive session on Thursday and printed fresh YTD lows in the last hour, albeit recovered few pips thereafter.
The pair quickly reversed an early European session uptick to the 1.3100 handle and was being capped by fresh US Dollar buying witnessed over the past hour or so, supported by a positive tone surrounding the US Treasury bond yields.
Meanwhile, mounting concerns regarding Brexit, ahead of the key EU summit to discuss key issues including Brexit, kept the British Pound on the back-foot and further collaborated to the pair’s fall to its lowest level since Nov. 2017.
However, the USD now seemed facing some resistance at higher levels, with a brief pause in the recent bullish run helping limit any further downside for the major, at least for the time being.
There aren’t any UK economic data due for release on Thursday and hence, the focus would remain on any fresh Brexit headlines coming out of the EU summit.
Later during the early North-American session, the release of final US Q1 GDP growth figures will influence the USD price dynamics and eventually provide some short-term trading opportunities ahead of the BoE Chief Economist Andy Haldane’s scheduled speech.
Technical levels to watch
Any subsequent weakness below 1.3040 immediate support has the potential to continue dragging the pair further towards the key 1.30 psychological mark. On the flip side, a meaningful recovery beyond the 1.3100 handle is likely to confront stiff resistance around the 1.3165-70 region and should cap any subsequent recovery.
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