GBP/USD retreats farther below mid-1.2200s ahead of US durable goods

• Brexit-related uncertainties prompt some fresh selling on Monday.
• A modest pickup in the USD demand adds to the intraday downfall.
• Investors look to US durable goods orders data for a fresh impetus.

The GBP/USD pair extended its steady intraday decline and is currently placed at the lower end of its daily trading range, around the 1.2235 region.
 
The pair failed to add to its last week’s goodish positive move and started retreating from levels just ahead of the 1.2300 handle amid a goodish pickup in the US Dollar demand – supported by the incoming positive trade-related headlines.
 
The USD regained some positive traction after China’s Vice Premier Liu He said China is willing to resolve trade issues with the US via claim negotiations. This was followed the US President Donald Trump’s remarks that China called the US negotiators last night and said that they want to come back to the negotiating table.

The recent Brexit optimism fades rather quickly

Meanwhile, weekend comments by the European Council President Donald Tusk overshadowed the latest Brexit optimism following the UK PM Boris Johnson’s meeting with German Chancellor Angela Merkel and French President Emmanuel Macron last week.
 
This coupled with the fact that PM Johnson had sought legal advice from the UK’s attorney general about the possibility of shutting down the parliament in order to prevent MPs forcing a further extension to Brexit further collaborated towards denting sentiment surrounding the British Pound.
 
It would now be interesting to see if the pair is able to find some support at lower levels or the ongoing slide marks the resumption of the prior well-established bearish trend as the market participants now look forward to the release of US durable goods orders data for some short-term trading opportunities.

Technical levels to watch