GBP/USD stuck near 1.2660, May’s Brexit plan eyed

The GBP/USD pair is seen consolidating the drop from near 1.2690 levels, although remains within the overnight trading range, as resurgent USD supply continues to cushion the downside.

The latest leg down in the spot can be mainly attributed to a fresh risk-aversion wave that gripped the European markets, as investors gear up for the UK PM May’s post-Brexit Citizens’ rights plan due to be outlined today before the EU leaders in Brussels.

Moreover, the pound also remains supported against its American rival, as markets continue to cheer hawkish comments delivered by the BOE Chief Economist Andy Haldane a day before.

Also, the latest optimistic remarks from the Democratic Unionist Party (DUP) lawmaker Jeffrey Donaldson’s helped cable to pause the slide.

Moreover, with Theresa May facing revolt over the legislation to smooth UK’s exit from the single market, cable will once again remain exposed to downside risks, in absence of fresh fundamental drivers from the UK docket.

Data-wise, we have the UK CBI industrial orders expectations data due out shortly, while from the US, jobless claims and Fedspeaks will provide fresh momentum on the prices. Also, BOE MPC member Forbes speech at the London Business School will be of note for the GBP.

GBP/USD levels to consider             

Slobodan Drvenica at Windsor Brokers Ltd offer key technical levels, noting that “Lower pivots lay at 1.2631 (100SMA) and 1.2600 (correction low), loss of which would open way towards targets at 1.2578/50 (daily cloud base/200SMA). Conversely, lift above 1.2700 pivot would expose key near-term barriers at 1.2800/20 zone (daily cloud top/recent multiple upside rejection).”