“¢ A modest USD rebound prompts some profit-taking near six-week tops.
“¢ Brexit optimism continues to underpin GBP and helped limit deeper losses.
The GBP/USD pair held on to its weaker tone through the mid-European session and is currently placed at the lower end of its daily trading range, just below mid””1.3000s.
The pair stalled its recent upsurge and started retreating from an important resistance marked by 100-day SMA. With investors still digesting the latest US tariffs on around $200 billion worth of Chinese imports, a modest US Dollar uptick was seen as one of the key factors prompting some profit taking at six week tops.
However, against the backdrop of recent optimism, showing that both the EU and the UK are hoping to come to an agreement, comments by the German and Austrian Ministers on Brexit, hoping to reach a Brexit deal by November underpinned the British Pound and helped limit further downside.
It, however, remains to be seen if the pair is able to regain positive traction or continues with its profit-taking slide amid absent relevant economic releases and near-term overbought conditions.
Technical levels to watch
Any further downfall is likely to find support near the 1.3100 handle, below which the slide could further get extended towards the 1.3060-50 support area. On the flip side, the 1.3165-70 region (100-DMA) might continue to act as an immediate hurdle, which if cleared should assist the pair to aim towards reclaiming the 1.3200 handle.
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