“¢ The British Pound remains depressed amid persistent Brexit-related uncertainties.
“¢ A modest pickup in the USD demand adds to the selling pressure in the last hour.
“¢ A sustained break below the 1.2600 handle should pave the way for additional losses.
The GBP/USD pair finally broke down of its daily consolidative trading range and has now moved on the verge of breaking below the 1.2600 handle.
A pickup in the US Dollar demand – in what could be termed as a delayed reaction to mostly in line US GDP growth figures and supported by a strong rebound in the US Treasury bond yields, was seen as one of the key factors behind the pair’s sudden drop in the last hour.
Meanwhile, the GBP bulls remained on the defensive amid persistent uncertainties led the recent UK political chaos and growing fears over a no-deal Brexit, despite the fact that various UK lawmakers have expressed their discomfort in leaving without a deal.
It would now be interesting to see if the pair is able to find some support at lower levels or finally breaks below the 1.2600 handle to confirm a near-term bearish breakdown, which should set the stage for an extension of the well-established bearish trend in the near-term.
Technical levels to watch
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