GBP / USD marks day lows near 1.3300 on Brexit and ahead of US data.

  • The pound is among the worst performing currencies on Wednesday.
  • GBP / USD despite retracement remains in recent range.

The GBP / USD broke below 1.3335 and fell to 1.3303, reaching the lowest level since Friday. The drop was driven by widespread weakness in the pound across the market.

Although there is news of progress in the negotiations for the Brexi, their speed does not generate positive expectations that an agreement between the European Union and the United Kingdom would be reached soon. This is putting pressure on the pound in the market.

The dollar for its part presents mixed results. In the last hour it was strengthened and recovered part of the lost ground. The rise in Treasury yields helps limit the pullback.

In minutes it will be published in US employment report on the situation in the private sector prepared by ADP. An increase in jobs of 410,000 is expected. In the afternoon of the American session, the Federal Reserve will publish the Beige Book on the state of the economy.

Still in range

Despite falling to a minimum in days, GBP / USD remains bullish although intensity was affected by the pullback from key resistance. The price for now holds above 1.3300. The zone between 1.3280 and 1.3300 is a key support that if broken would point to further weakness ahead, exposing 1.3200.

In the opposite direction, the rejection above 1.3400 was a negative factor for the pound. In case it manages to return and affirm above, it would be finding support for a bullish extension.

Technical levels

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