GBP/USD refreshes session lows, slips below mid-1.3500s
• GBP weighed down by the weekend Brexit news
• The post-NFP USD recovery prompts additional selling.
After an initial uptick to 1.3585 area, the GBP/USD pair met with some fresh supply and dropped to session low during the early European session.
Sentiment around the British Pound weakened a bit following the weekend Brexit news , citing that the UK PM May will appoint a Cabinet Minister, who will provide regular updates on preparations for leaving the EU ‘without a trade deal’.
Meanwhile, the latest leg of retracement slide, of over 40-pips from session tops, lacked any obvious catalyst and was solely led by an extension of the post-NFP US Dollar recovery move.
Despite Friday’s mixed results from the US monthly jobs report, a goodish pickup in the US Treasury bond yields , amid growing expectations for a March Fed rate hike move, underpinned the greenback demand and contributed towards capping the pair below the 1.3600 handle.
Traders now look forward to the release of UK Halifax HPI data and Fedspeak for some fresh trading impetus. The key focus, however, would be on this week’s US inflation figures, which along with other important macro releases would help investors determine the pair’s next leg of directional move.
Technical levels to watch
Immediate support remains near the 1.3500-1.3490 region, which if broken could accelerate the slide back towards the 1.3435-30 intermediate support en-route the 1.3400 handle. On the upside, the 1.3585 region now seems to have emerged as immediate resistance and is closely followed by a strong hurdle near the 1.3600 handle.