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  • GBP/USD remained depressed for the sixth consecutive session on Wednesday.
  • Rising fears of a no-deal Brexit, sustained USD buying continued exerting pressure.
  • Bearish traders now await the UK internal market bill for some meaningful impetus.

The GBP/USD pair now seems to have entered a bearish consolidation phase and was seen oscillating in a range near six-week lows, around the 1.2940-50 region.

The pair extended its recent sharp pullback from YTD tops, around the 1.3480 region and witnessed some follow-through selling for the sixth consecutive session on Wednesday. The British pound sold off across the board after the UK Prime Minister Boris Johnson threatened to walk away from Brexit talks if a deal is not reached by mid-October.

This comes as the penultimate round of discussions kicked off in London on Tuesday and fueled market worries that the UK could crash out of the European Union at the end of the transition period on December 31. This, in turn, undermined the sterling, which coupled with the prevalent US dollar buying interest kept exerting pressure on the GBP/USD pair.

Bears took some breather and now look forward to the UK’s blueprint for life outside the EU, detailing the government’s plans for trade between different parts of the country. The internal market bill is expected to be published sometime around 11:30 GMT and will be followed by UK PM Johnson’s press conference at 15:00 GMT.

Nevertheless, the GBP/USD pair still seems vulnerable to continue with its bearish trajectory. However, oversold conditions on hourly charts make it prudent to wait for a sustained weakness below the 1.2900 mark before positioning for a slide towards the 1.2820-15 support area.

Technical levels to watch