GBP/USD hits fresh session lows, slides further below mid-1.3100s

Haresh Menghani FXStreet

• Reemerging Brexit uncertainties continue to weigh on GBP.
• A subdued USD price action also fails to extend any support.

The GBP/USD pair extended its steady intraday decline and dropped to a fresh session low, below mid-1.3100s during the mid-European session.

The pair failed to capitalize on the overnight goodish rebound and once again fizzled out ahead of the 1.3200 handle amid reemerging Brexit uncertainties and growing pessimism over the possibilities of a breakthrough in Brexit talks this week.

The GBP bulls seemed rather unimpressed by some positive comments by UK finance minister Philip Hammond and Foreign Secretary Jeremy Hunt, reaffirming that a deal can still be reached by this weekend - just in time for next week's meaningful vote.

With Brexit-related developments turning out to be an exclusive driver of the sentiment surrounding the British Pound, the pair seemed unaffected by a subdued US Dollar demand, albeit seemed to be the only factor that might help limit sharp downside.

Moving ahead, the latest ECB monetary policy update and the post-meeting press conference will now be looked upon for cross-driven movement and some short-term trading opportunities amid absent relevant market moving economic releases.

Technical levels to watch

Yohay Elam, FXStreet's own Analyst writes, “substantial support awaits GBP/USD at 1.3132 where we see the potent Fibonacci 38.2% one-month converging with the BB 1h-Lower and the previous day's low.”

“Resistance is quite close. At 1.3201 we note a dense cluster including the BB 1h-Upper, the PP 1d-R1, the SMA 200-1h, the SMA 5-1d, and the SMA 100-1h,” he added further.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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