GBP/USD consolidates intraday slump to 27-month lows, holds above 1.2400 mark ahead of Powell
|- Persistent Brexit-related uncertainty continues to weigh on the British Pound.
- The USD gets a boost from upbeat retail sales data and added to the selling bias.
- Bears take some breather ahead of the 1.2400 mark and Powell’s scheduled speech.
The GBP/USD pair now seems to have entered a bearish consolidation phase and was seen oscillating near the lower end of its daily trading range, or multi-month lows.
The sentiment surrounding the British Pound remained fragile amid persistent Brexit uncertainties and failed to gain any respite from Tuesday upbeat UK wage growth data, with a goodish pickup in the US Dollar demand exerting some additional downward pressure.
The already stronger greenback got an additional boost following the release of stronger-than-expected US monthly retail sales figures for June, while possibilities of some trading stops being triggered below the key 1.2500 psychological mark further aggravated the bearish pressure.
However, highly oversold conditions on hourly charts helped limit find some support just ahead of the 1.2400 round figure mark and the Fed Chair Jerome Powell's scheduled speech, which will be looked upon for fresh clues over the central bank's monetary policy outlook and provide a fresh impetus.
Technical levels to watch
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