GBP/USD hits over 2-month lows, around mid-1.2900s amid notable USD demand
| • A goodish pickup in the USD demand prompts some aggressive selling.
• Downside seemed cushioned as investors await fresh Brexit updates.
The GBP/USD pair failed to capitalize on an intraday uptick to levels beyond the key 1.30 psychological mark and tumbled to over two-month lows in the last hour.
The bid tone surrounding the US Dollar picked up the pace during the early North-American session and was seen as one of the key factors behind the pair's latest leg of a sharp decline of over 80-pips from an intraday high level of 1.3019.
This coupled with possibilities of some short-term trading stops being triggered on a sustained break below the very important 200-day SMA support, around the 1.2970 region, further accelerated the downward momentum in the last hour.
It would now be interesting to see if the pair is able to attract any buying interest at lower levels or the current slide marks a fresh near-term bearish breakdown as market participants now turn their attention back to Brexit-related developments.
It is worth reporting that the UK PM Theresa May is set to restart cross-party Brexit talks today amid the recent development, wherein senior UK Conservative lawmakers are again trying to oust PM Theresa May in wake of the upcoming European elections.
Technical levels to watch
Yohay Elam, FXStreet's own Analyst writes: “Further down, we are back to levels seen in mid-February. 1.2895 separated ranges back then. 1.2830 is next. Initial resistance is at 1.3015 that was a high point in recent days. 1.3030 provided support in early April and now works as resistance. 1.3070 was a peak in mid-April, and 1.3125 capped cable several times during this month.”
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