The bears appear to take a breather during mid-Asia, allowing a minor-recovery in the GBP/USD pair back towards the mid-point of 1.29 handle.
GBP/USD awaits UK data for fresh impetus
Currently, GBP/USD moves away from five-day lows and attempts a tepid-bounce, in a bid to fill in the bearish opening gap. At the time of writing, GBP/USD drops -0.26% to 1.2944, recovering from a steep drop to 1.2919 levels.
The GBP/USD extended its ongoing bearish momentum and fell sharply, as the pound was slammed on renewed Brexit fears, following British PM May’s latest comments. May noted in her Tory party conference that the UK will begin the formal Brexit negotiation process by the end of March 2017 and that the UK looks set to leave the EU by summer 2019.
However, the losses remained capped amid a risk-friendly environment, in response to higher Asian equities as Deutsche bank-related concerns ease. Next of note for the major remains the UK manufacturing PMI data ahead of the US ISM manufacturing report due later in the NA session.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.2967 (5-DMA), above which 1.2986 (10-DMA) and 1.3000 (round figure) would be tested. On the flip side, support is seen at 1.2914 (Sept 26 low) below that at 1.2900 (key support) and at 1.2872/63 (mid-Aug lows).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.