GBP/USD keeps the negative tone near 1.2160
|The Sterling remains on the defensive on Wednesday, sending GBP/USD to the mid-1.2100s, close to daily lows.
GBP/USD attention to data, Trump
The pair is looking to keep the trade above the 1.2100 handle for the time being after briefly probing the key support in the 1.2100 neighbourhood on Tuesday.
The outlook for GBP remains fragile in light of the renewed concerns over the likeliness of a ‘hard Brexit’ scenario in the UK following comments by PM Theresa May over the weekend.
Adding to the already delicate context around the British Pound, the UK’s Supreme Court is due to decide later in the month whether the Parliament or T.May has the power to trigger Article 50 and the negotiations to exit the European Union.
Today’s docket in the UK economy includes Manufacturing Production, Industrial Production, Trade Balance figures and the GDP Estimate by NIESR.
On the USD-side, US president-elect Donald Trump will hold a press conference in the European evening.
GBP/USD levels to consider
As of writing the pair is retreating 0.16% at 1.2157 and a break below 1.2104 (low Jan.10) would open the door to 1.2081 (low Oct.28) and then 1.1450 (GBP ‘flash crash’ Oct.7). On the upside, the initial hurdle lines up at 1.2302 (20-day sma) followed by 1.2414 (55-day sma) and finally 1.2431 (high Jan.6).
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