• Uncertainty over the duration of Article 50 exerts seemed to weigh on the GBP.
• A renewed slide in the US bond yields undermine USD and helped limit losses.
The GBP/USD pair finally broke down of its Asian session consolidation phase and dropped to fresh session low in the last hour, albeit quickly recovered few pips thereafter.
As investors continue to digest this week's key Brexit votes, wherein the UK Parliament on Thursday finally voted to pass a motion to request an extension of Article 50, the pair retreated farther from nine-month tops set earlier this week and remained under some selling pressure for the second consecutive session.
The UK will now ask the EU for a delay of the looming Brexit deadline to June 30, subject to a deal being approved by March 20. The proposal also denotes a longer extension if Parliament rejects May's deal for the third time, which might prolong Brexit uncertainties and was seen weighing on the British Pound.
Meanwhile, the US Dollar failed to preserve the overnight modest uptick and remained on the defensive amid some renewed slide in the US Treasury bond yields and eventually helped limit deeper losses, with bears still awaiting a sustained weakness below the 1.3200 handle.
In absence of any major market moving economic releases from the UK, the incoming Brexit-related news might continue to act as an exclusive driver of the sentiment surrounding the British Pound. Later during the early North-American session, second-tier US economic data might produce some short-term trading opportunities.
Technical levels to watch
GBP/USD
Overview:
Today Last Price: 1.3225
Today Daily change: -16 pips
Today Daily change %: -0.12%
Today Daily Open: 1.3241
Trends:
Daily SMA20: 1.3129
Daily SMA50: 1.3013
Daily SMA100: 1.2894
Daily SMA200: 1.2983
Levels:
Previous Daily High: 1.3342
Previous Daily Low: 1.3207
Previous Weekly High: 1.3269
Previous Weekly Low: 1.299
Previous Monthly High: 1.3351
Previous Monthly Low: 1.2773
Daily Fibonacci 38.2%: 1.3259
Daily Fibonacci 61.8%: 1.329
Daily Pivot Point S1: 1.3185
Daily Pivot Point S2: 1.3129
Daily Pivot Point S3: 1.3051
Daily Pivot Point R1: 1.3319
Daily Pivot Point R2: 1.3397
Daily Pivot Point R3: 1.3453
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