GBP/USD flirting with lows, around mid-1.3500s ahead of May’s Brexit speech
|The GBP/USD pair stalled its up-move just ahead of the 1.3600 handle and has now dropped to fresh session lows in the region of mid-1.3500s.
The pair turned lower despite of a broadly lower US Dollar as investors seemed refraining from placing aggressive bets ahead of the UK PM Theresa May's Brexit speech. May’s remarks will attract a lot of attention in the FX market and might turn out be the next big catalyst, driving the Sterling in the near-term.
• GBP wary on May’s speech today – Danske Bank
Meanwhile, reemergence of geopolitical tensions in the Korean peninsula seems to have negated the hawkish Fed infused positive trend around the greenback and might now contribute towards limiting any immediate sharp downslide for the major.
There isn’t much in terms of any major market moving economic releases on Friday and hence, broader market sentiment surrounding the British Pound would act as a key determinant of the pair's movement on the last trading day of the week.
• GBP futures: further upside unlikely
Technical levels to watch
Immediate support is pegged near 1.3510-1.3500 area, below which the pair is likely to retest 1.3460-50 support area before eventually dropping to its next major support near the 1.3400 handle.
On the upside, the 1.3600 handle now seems to have emerged as immediate hurdle, which if cleared decisively could lift the pair back towards yearly tops resistance near 1.3660 level ahead of the 1.3700 mark.
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