GBP/USD Forecast: Remains vulnerable to test sub-1.2800 level, US macro data eyed for some impetus
|The GBP/USD pair added to the overnight slide below the very important 200-day SMA and dropped to fresh two-month lows on Wednesday. The British Pound remained depressed in wake of the recent reports about attempts to oust the UK PM Theresa May and was further weighed down by the latest development, wherein the talks between the ruling Conservative Party and the opposition Labour Party were said to be close to collapsing. This coupled with a strong follow-through US Dollar rally, rising to its highest level since June 2017, further collaborated to the pair's intraday slide amid absent relevant market moving economic releases.
The pair touched an intraday low level of 1.2888, though the bearish pressure eased a bit after the 1922 Committee rejected a rule change, which would allow a new procedure to oust PM May, and news that May could put forward Brexit deal for a vote in the parliament sometime during next week. The pair now seems to have stabilized near the 1.2900 handle as investors await fresh Brexit-related news/developments before positioning for the next leg of a directional move. Later during the early North-American session, the release of US durable goods orders data will influence the USD price dynamics and further collaborate towards producing some meaningful trading opportunities.
From a technical perspective, the pair now seems to have found some support near 50% Fibonacci retracement level of the 1.2396-1.3381 up-move. However, given the recent bearish break below a short-term ascending trend-channel, descending triangle and 200-DMA, any attempted bounce seems more likely to run into some fresh supply near the mentioned support break-point around the 1.2965-70 region. Meanwhile, bears are likely to wait for a convincing break through the mentioned support, below which the pair is likely to accelerate the slide and aim towards testing sub-1.2800 level - (1.2775 support marked by 61.8% Fibonacci retracement level).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.