• Brexit concerns continue to dent sentiment surrounding the GBP.
• Renewed USD buying interest prompts some aggressive selling.
• Technical selling below 1.29 handle aggravates the downfall.
Bearish pressure surrounding the British Pound remains unabated, with the GBP/USD pair weakening farther below the 1.2900 handle to its lowest level since late August 2017.
After an Asian session uptick to an intraday high level of 1.2960, the pair came under some intense selling pressure and resumed with its well-established bearish trend. Against the backdrop of Brexit uncertainties, a goodish pickup in the US Dollar demand was seen as one of the key factors exerting some additional downward pressure on the major.
Adding to this, possibilities of some short-term trading stops being triggered below previous YTD low level of 1.2920, set on Monday, and a subsequent break below the 1.2900 handle seems to have further aggravated the selling pressure over the past couple of hour.
In absence of any major market moving economic releases, traders might now take cues from Richmond Fed President Thomas Barkin's scheduled speech. The key focus, however, would be on this week's important macroeconomic releases, including the prelim UK Q2 GDP growth figures and the latest US consumer inflation figures, which will be looked upon for some immediate respite for the GBP bulls.
Technical Analysis
The bearish slide now seems to have paused near a short-term descending trend-channel support on the daily chart. A convincing break below the mentioned support would open room for an extension of the near-term downward trajectory, albeit near-term oversold conditions might help limit deeper losses, at least for the time being.
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.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0600 as focus shifts to Powell speech
EUR/USD fluctuates in a narrow range above 1.0600 on Tuesday as the better-than-expected Economic Sentiment data from Germany helps the Euro hold its ground. Fed Chairman Powell will speak on the policy outlook later in the day.
GBP/USD stays near 1.2450 after UK employment data
GBP/USD gains traction and trades near 1.2450 after falling toward 1.2400 earlier in the day. The data from the UK showed that the ILO Unemployment Rate in February rose to 4.2% from 4%, limiting Pound Sterling's upside.
Gold retreats to $2,370 as US yields push higher
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
XRP struggles below $0.50 resistance as SEC vs. Ripple lawsuit likely to enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
US outperformance continues
The economic divergence between the US and the rest of the world has become increasingly pronounced. The latest US inflation prints highlight that underlying inflation pressures seemingly remain stickier than in most other parts of the world supported by a strong US labour market.