GBP/USD drops to fresh session low, around 1.3125 level
| • Resurgent USD demand offset optimism over Brexit negotiations.
• The NIESR UK GDP estimate eyed ahead of Yellen speech.
The greenback held onto its strong gains and dragged the GBP/USD pair to fresh session lows during the early NA session.
Mostly positive US macro data released late last week added to market expectations for a December Fed rate hike action, which coupled with a modest pickup in the US Treasury bond yields reignited the US Dollar rally on Tuesday.
Moreover, optimism over Brexit negotiations, following the UK PM Theresa May's overnight comments, now seems to have receded, with resurgent USD demand exerting some fresh selling pressure and turning out to be an exclusive driver of the pair's downslide.
Today's US economic docket features the release of JOLTS Job Openings data, but the key focus would be on the Fed Chair Janet Yellen's speech, scheduled later during the NY trading session. In the meantime, the NIESR GDP estimate for the three months to October might also provide some short-term trading impetus.
• GBP futures: diminishing odds for further decline
Technical levels to watch
Immediate support is pegged near the 1.3100 handle, below which the pair might turn vulnerable to break below the 1.3100 handle and aim towards resetting 1.3045-40 support area. On the upside, momentum above 1.3175 level could get extended even beyond the 1.3200 handle back towards 1.3225-30 heavy supply zone.
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.