GBP/USD refreshes session lows, fast approaching 1.35 mark

The GBP/USD pair extended its sharp retracement slide from the 1.3585 supply zone and refreshed session lows during the early NA session.

Expectations for upcoming rate hikes by the Federal Reserve continued to underpin demand for the US Dollar and have been one of the key factors exerting downward pressure on the major.

Meanwhile, the latest UK political developments, wherein the UK PM Theresa May's attempt to restructure her government confronted fierce opposition within her government, also dented sentiment surrounding the British Pound and further collaborated to the pair’s retracement slide. 

Currently trading around the 1.3515-10 region, 3-day lows, the pair is now steadily heading back towards a previous descending trend-line resistance break-point, now turned support, currently near the 1.3485 region. 

In absence of any major market moving economic releases, the USD price dynamics and technical factors would play a dominant role in determining the pair's momentum through the NY trading session on Tuesday.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: “Technically, the 4 hours chart favors a bearish extension ahead as the price is pressuring a critical support area, the 1.3520 region, as the price develops below a directionless 20 SMA, whilst technical indicators entered bearish territory, the RSI gaining strength downward around 43 but the Momentum still lagging, flat within neutral territory. Last week's low was set at 1.3495, with a break below the level favoring a continued slide for the upcoming sessions toward the 1.3400/10 price zone.”