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  • The USD regains traction following the release of mostly upbeat US jobs data.
  • The EU Parliament President has reportedly rejected the UK’s Brexit proposal.

The GBP/USD pair broke down of its daily consolidative trading range and dropped to fresh session lows, further below the 1.2300 round-figure mark in the last hour.
The pair extended previous session’s late pullback from over one-week tops, levels beyond the 1.2400 handle, and came under some fresh selling pressure during the early North-American session following the release of US monthly jobs report.

Brexit headlines added to the post-NFP slide

A slight disappointment from the headline NFP print was largely offset by an upward revision of the previous month’s reading. Adding to this, an unexpected fall in the US unemployment rate provided a modest lift to the US Dollar and exerted some pressure.

Meanwhile, the latest leg of a sudden drop of around 40-60 pips could further be attributed to some selling around the British Pound on reports indicating that the European parliament president has rejected the UK PM Boris Johnson’s new Brexit proposal.
This coupled with possibilities of some technical selling below the mid-European session lows, around the 1.2310 region, further collaborated to the pair’s ongoing slide. The pair has now moved within the striking distance of the overnight swing low, which if broken might set the stage for a further intraday depreciating move.

Technical levels to watch