GBP/USD hangs near weekly lows, just above mid-1.2900s

• GBP/USD remains depressed for the second consecutive session on Thursday.
• Fears of a no-deal Brexit, stronger USD continued exerting downward pressure.

The GBP/USD pair edged lower through the mid-European session on Thursday and is currently placed near the lower end of its daily trading range, just above mid-1.2900s.

Following a brief consolidation through the early part of Thursday’s trading action, the pair met with some fresh supply and turned lower for the second consecutive session – also marking its third day of a negative move in the previous four.

Brexit concerns continue to weigh on the pound

Market fears that Britain might crash out of the European Union at the end of the transition period later this year continued undermining the British pound and turned out to be one of the key factors exerting some downward pressure on the major.

On the other hand, the US dollar remained stood tall near two-month tops and remained well supported by the incoming stronger US macro data. However, a modest pullback in the US Treasury bond yields capped the USD upside, albeit did little to provide any respite to the major.

Thursday’s relatively thin US economic docket, featuring the release of the usual initial weekly jobless claims, seems unlikely to provide any meaningful impetus. Hence, the key focus will remain on Friday’s important release of the closely watched US monthly jobs report (NFP).

Technical levels to watch