“¢ Some renewed USD weakness helps regain some positive traction on Friday.
“¢ Brexit uncertainties undermined British Pound and keep a lid on the up-move.
“¢ US macro data eyed for some impetus ahead of Powell’s speech later today.
The GBP/USD pair quickly retreated around 20-25 pips from session tops, albeit once again managed to catch some fresh bids near the 1.2800 handle.
After yesterday’s sharp decline, marking its first loss in the past six trading session, the pair regained some positive traction on the last trading day of the week and was being supported by some renewed US Dollar weakness.
The pair touched an intraday high level of 1.2839 but struggled to build on the positive momentum amid absent fundamental catalyst. Meanwhile, yesterday’s publication of the first batch of technical notices in the event of a no-deal Brexit revived hard-Brexit fears and might further collaborate towards capping any meaningful up-move for the British Pound.
Market participants now look forward to the release of durable goods orders data, a key highlight from today’s US economic docket, in order to grab some short-term trading opportunities on the last trading day of the week.
The key focus, however, would be on the Fed Chair Jerome Powell’s highly anticipated speech at the annual Economic Policy Symposium, in Jackson Hole. This along with any fresh Brexit-related news/developments should play an important role in determining the pair’s near-term direction.
Technical levels to watch
Immediate resistance is pegged near the 1.2840-45 region, above which the pair is likely to aim towards reclaiming the 1.2900 round figure mark before testing overnight swing high, around the 1.2935 region.
On the flip side, the 1.2800 handle remains an immediate strong support to defend, which if broken is likely to accelerate the fall towards 1.2770-65 horizontal support en-route the 1.2700 round figure mark.
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