“¢ A modest USD retracement helps build on Friday’s modest rebound from 13-month lows.
“¢ Brexit concerns/Turkish currency crisis might keep a lid on any meaningful recovery move.
The GBP/USD pair extended its consolidative price action through the mid-European session and is currently placed at the top end of its daily trading range, around the 1.2770-80 region.
Rumoured news that Turkey is planning to release the US pastor Brunson on August 15 prompted some US Dollar profit-taking and helped the pair to hold comfortably above 13-month lows set on Friday. The report, however, was denied by the US Turkish Embassy official and thus, failed to attract any follow-through buying.
Investors also seemed to refrain from placing any bullish bets amid growing prospects for a no-deal Brexit, which could also be one of the key factors that might continue to contribute towards keeping a lid on any near-term meaningful attempted recovery move.
There aren’t any major market-moving economic data due for release today and hence, any fresh developments/news related to the currency crisis in Turkey might continue to influence the pair’s momentum ahead of the latest UK employment details on Tuesday.
Technical levels to watch
Immediate hurdle is pegged near the 1.2790-1.2800 region and is closely followed by an important support break-point, now turned resistance near the 1.2830-35 region. On the flip side, the 1.2730-20 area now seems to have emerged as an immediate support, which if broken might turn the pair vulnerable to fall below the 1.2700 handle and head towards testing its next support near the 1.2635-30 region.
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