GBP/USD eases further, hits fresh session low
|The GBP/USD pair extended its rejection move from the vicinity of 1.2600 handle and refreshed session low near 1.2535-30 band after upbeat US economic releases.
The pair came under some selling pressure after data released from the US showed consumer confidence in March soared to the highest level in more than 16 years. The Conference Board's Consumer Confidence Index surged to 125.6 in March from 116.1 in February and easily surpassed even the most optimistic estimates.
Adding to this, continuous recovery in the Richmond Manufacturing Index, from the worst reading since 2013 in August (-11) to the highest level since 2010 in March (+22), extended some additional support to the US Dollar, albeit failed to provide any bullish impetus on growing skepticism over the US President Donald Trump's pro-growth economic policies.
In absence of any negative surprise from the US economic data front, traders seemed inclined to take some profit off the table as the final countdown for the impending Brexit begins. The UK PM Theresa May is expected to trigger Article 50 of the Lisbon treaty on Wednesday and formally begin the negotiation process of separation from the European Union.
Later during the NY session, speeches from various Fed officials, including the Fed Chair Janet Yellen, would now be looked upon for some fresh impetus.
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet writes, "it will take an upward acceleration through 1.2590 to see the pair rallying, with 1.2630 as the next resistance and 1.2705, February high, being a possible bullish target."
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.