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  • Boris Johnson’s spokesman said there is a long way to go secure a Brexit deal.
  • The United States (US) economy expanded by 2% in the second quarter.
  • US Dollar Index rose above 99 after posting modest losses earlier in the session.

The broad-based USD strength and the uncertainty surrounding Brexit caused the bearish pressure on the GBP/USD pair to remain intact on Thursday. After slumping to its lowest level in two weeks at 1.2303, the pair staged a modest rebound in the second half of the day and now seems to be staying in a consolidation phase near the 1.2350 mark, where it closed  the previous trading day.

On Thursday, British Prime Minister Boris Johnson’s spokesman told reporters that they had a very long way to go to secure a Brexit deal with the European Union. Meanwhile, in a report assessing different Brexit scenarios, “In a longer-term, extended period of trading on WTO terms would act as a drag on British companies’ performance due to tariff impact, non-tariff barriers,”  Fitch Ratings said.

USD stays resilient

According to the United States (US) Bureau of Economic Analysis’ (BEA) third estimate, the gross domestic product (GDP) expanded by 2% in the second quarter to match the market expectation and the second estimate. However, the report also revealed that business investment contracted more sharply than previously estimated and weighed on the Greenback.

The US Dollar Index lost its traction and dropped to a session low of 98.84 but didn’t have a difficult time erasing its losses. As of writing, the index was up 0.08% on the day at 99.08.

On Friday, markets will be paying close attention to the BEA’s Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred gauge of inflation, data.

Technical levels to watch for