GBP/USD surrenders modest intraday recovery gains, back below mid-1.3200s

   “¢   A subdued USD price action lends some support and helps bounce off lows.  
   “¢   Brexit uncertainties continue to weigh on the GBP and seemed to cap gains.

The GBP/USD pair struggled to capitalize on a goodish intraday bounce and is currently placed in the neutral territory, just a few pips below mid-1.3200s.

The pair did lose some ground during the early European session but once again managed to find decent support near the 1.3200 round figure mark and rallied to an intraday high level of 1.3278.

As investors digested this week’s key Brexit votes, the volatility around the British Pound now seems to have receded and some renewed US Dollar selling bias extended some support to the major.

The British Pound got an additional boost after a French President Official said that the EU27 would agree to a short technical extension to Article 50 if the UK Parliament passes a meaningful vote next week.

The official further added that the EU27 would widely oppose a short extension if no deal has been passed and turned out to be the only factor that kept a lid on any strong follow-through move for the major.

According to Bloomberg, citing a UK official on the matter, Tuesday evening was reported to be the most likely time for the third meaningful vote on the Brexit vote, which if rejected might lead a longer extension and further prolong Brexit uncertainties.

Technical levels to watch