- GBP/USD hit a new low below 1.3100, the lowest since February 25th.
- The Brexit impasse and the ECB’s impact weigh.
- The technical picture is bearish for the pair.
GBP/USD dipped below the previous weekly low at the round number of 1.3100 and hit a new session low of 1.3088, the lowest since February 25th, ten days ago.
Brexit talks have not yielded any results. The European Union refused to provide concession on the Irish Backstop. Making legally-binding commitments is seen as risky, especially as such a deal is not guaranteed to pass in the House of Commons.
The European Central Bank pushed back its guidance, announced a new TLTRO (funding scheme), and slashed forecasts. The gloomy mood from the Frankfurt-based institution spread to broader markets.
US data came out marginally above expectations with jobless claims at 223K, revised labor costs at 2.0% and Productivity at 1.9%.
GBP/USD Technical Analysis
GBP/USD is trading below the 50 Simple Moving Average on the four-hour chart but still above the 200 SMA which comes out around 1.3050 and provides support. 1.3010 was a support line in mid-February and 1.2970 was a swing low around that time. 1.2940 and 1.2900 are next.
1.3100 is still fought over. 1.3150 worked as support in early March and it is followed by the round number of 1.3200 which capped pound/dollar around the same time. 1.3275 and 1.3340 are next.