• The US bond yields retreat from multi-year tops and prompt some USD profit-taking.
• Brexit uncertainties continue to weigh on GBP and keep a lid on any meaningful up-move.
• BoE Broadbent’s testimony and Raab’s Brexit update eyed for some fresh impetus.
The GBP/USD pair maintained its offered tone, for the second consecutive session, albeit has managed to recover around 30-pips from daily lows.
The pair once again managed to find some support ahead of the 1.3030-25 support area and was being supported by a modest US Dollar pull-back from seven-week tops.
After refreshing fresh multi-year tops earlier today, the US Treasury bond yields started retreating and prompted some USD profit-taking, which was eventually seen lending some support.
The uptick, however, lacked any strong conviction/follow-through and continues to be weighed down by Conservative MP Steve Baker’s comments that the UK should not be afraid to move forward with ’no-deal‘.
Currently hovering around mid-1.3000s, within striking distance of session lows, market participants now look forward to the Brexit secretary Dominic Raab’s update on the state of the Brexit negotiations for fresh impetus.
Ahead of the key Brexit speech, the BoE Deputy Governor Ben Broadbent is scheduled to testify on the use of the Retail Price Index before the Economic Affairs Committee and might assist traders to grab some meaningful opportunities.
Technical levels to watch
The 1.3030-25 region might continue to protect the immediate downside and is closely followed the key 1.30 psychological mark, below which the pair is likely to accelerate the fall back towards 1.2940-30 support area.
On the flip side, the 1.3075-80 zone now seems to have emerged as an immediate resistance, which if cleared could lift the pair beyond the 1.3100 handle (100-DMA) towards its next hurdle near the 1.3130-35 region.