GBP/USD challenges lows near 1.2410
|The march north of the greenback stays unabated on Thursday, now sending GBP/USD to test the area of daily lows in the vicinity of 1.2410.
GBP/USD weaker on USD-buying
The pair stayed apathetic after UK’s PM Theresa May officially triggered Article 50 on Wednesday, signalling the start of (at least) two years of negotiations that should end with the UK definitely leaving the European Union.
GBP kept the range in the wake of the event, as markets participants have already priced in this scenario, while the attention should now shift to the process per se, which is expected to start following the elections in France and Germany.
With Brexit issues now relegated to a secondary role at least in the near term, USD-dynamics should become the main driver for the pair’s price action once again. In fact, the recent pick up in the demand for the buck has forced cable to ease around two cents since Monday’s peaks beyond 1.2600 the figure.
Nothing scheduled data wise in the UK, whereas another revision of the GDP during the fourth quarter 2016 and Initial Claims are due in the US calendar.
Additionally, New York Fed W.Dudley (permanent voter, centrist), Cleveland Fed L.Mester (2018 voter, hawkish), Dallas Fed R.Kaplan (voter, hawkish) and San Francisco Fed J.Williams (2018 voter, hawkish) are all due to speak later in the NA session.
GBP/USD levels to consider
As of writing the pair is losing 0.18% at 1.2412 and a breakdown of 1.2375 (low Mar.29) followed by 1.2341 (20-day sma) and then 1.2302 (61.8% Fibo of 1.2106-1.2618). On the upside, the initial hurdle aligns at 1.2476 (high Mar.29) followed by 1.2598 (high Mar.29) and finally 1.2618 (high Mar.27).
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