GBP/USD remains heavily offered near multi-month lows
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GBP/USD remains heavily offered near multi-month lows

   “¢   Brexit-related chaos continues to dent sentiment around the British Pound.
   “¢   The UK consumer inflation figures miss estimates and do little to lend support.

The GBP/USD pair maintained its heavily offered tone through the early European session and held near multi-month lows post-UK CPI figures.

The British Pound remained depressed and added to its recent heavy losses amid growing market conviction that the UK PM Theresa May won’t be able to gather the needed votes to pass her withdrawal agreement bill.  

May’s new proposal outlined the passage of her Brexit deal as a pre-condition for a vote on a second referendum and given that similar versions were voted down previously, a fourth humiliating defeat was seen imminent.

Meanwhile, Wednesday’s release of UK consumer inflation figures came in to show a pickup in April but missed consensus estimates and hence, did little to impress the GBP bulls or ease the prevailing bearish pressure.

Even a subdued US Dollar demand – amid a softer tone around the US Treasury bond yields ahead of today’s important release of the latest FOMC meeting minutes, also failed to lend any support to the major.

However, near-term oversold conditions seemed to be the only factor helping limit further downside as investors now look forward to May’s statement for further details on her 10-point new Brexit proposal.

Technical levels to watch


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