“¢ Brexit uncertainties continue to dent sentiment surrounding the British Pound.
“¢ The USD recovers a part of early losses and added to the downward momentum.
“¢ Traders now eye US ISM manufacturing PMI for some short-term trading impetus.
The GBP/USD pair remained heavily offered through the early North-American session, with bears still awaiting a decisive break below the 1.2700 handle.
The pair witnessed a sudden turnaround since the early European session and drifted into negative territory for the third consecutive session, retreating over 120-pips from an intraday high level of 1.2825.
The downfall lacked any obvious catalyst and occured despite stronger than expected UK manufacturing PMI print for Nov., though persistent Brexit uncertainties seemed to be one of the key factors continuing to dent sentiment surrounding the British Pound.
Meanwhile, the US Dollar recovered a part of the early steep decline, led by the latest optimism over the US-China trade truce, and further collaborated towards aggravating the selling pressure.
Adding to this, possibilities of some technical selling below the 1.2725 support (Nov. monthly lows) exerted some additional downward pressure and dragged the pair to its lowest level since late-Oct.
Bulls, however, now seemed to show some resilience near the 1.2700 handle, with the pair quickly recovering few pips from daily lows to currently trade around the 1.2715-20 region.
Market participants now look forward to the release of ISM manufacturing PMI, a key highlight from today’s US economic docket, for some fresh impetus and in order to grab some short-term opportunities.
Technical levels to watch
On a sustained break below the mentioned handle, the pair is likely to accelerate the fall further towards testing 2018 yearly lows support near the 1.2665-60 region. On the flip side, immediate resistance is now pegged near the 1.2740 level, above which a bout of short-covering could assist the pair to aim back towards reclaiming the 1.2800 handle with some intermediate resistance near the 1.2770 level.
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