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GBP/USD drifts into negative territory, refreshes session lows in pre-Fed trading action

   •  UK CPI falls to 21-month lows and prompts some GBP weakness.
   •  Brexit uncertainties offset USD weakness and add to the selling bias.
   •  Investors now eye the latest FOMC decision for some fresh impetus.

The GBP/USD pair extended its intraday retracement from session high level of 1.2679 and has now drifted into negative territory. 

Despite the prevalent US Dollar selling bias, the pair failed to capitalize on the early uptick and was further weighed down by some softness in the British Pound following the release of the latest UK consumer inflation figures.

In fact, the headline UK CPI eased to 2.3% y/y rate in November, marking its lowest level since March 2017, and underscored the case for the BoE to hold off on further policy tightening, when it announces its decision on Thursday.

Meanwhile, the latest leg of a sudden fall over the past hour or so coincided with the UK PM Theresa May's comments, saying that we are still working with the EU to seek those assurances that the parliament wants.

May's comments revived concerns about the political deadlock over the UK efforts to exit the European Union and seemed to be the only factor prompting some fresh selling around the Sterling.

It would now be interesting to see if the pair is able to find any support at lower levels as market participants start repositioning for the upcoming event risk - the highly anticipated FOMC monetary policy update.

Technical levels to watch


    Today Last Price: 1.2627
    Today Daily change: -10 pips
    Today Daily change %: -0.0791%
    Today Daily Open: 1.2637
    Previous Daily SMA20: 1.2714
    Previous Daily SMA50: 1.287
    Previous Daily SMA100: 1.2921
    Previous Daily SMA200: 1.3244
    Previous Daily High: 1.2706
    Previous Daily Low: 1.2608
    Previous Weekly High: 1.276
    Previous Weekly Low: 1.2477
    Previous Monthly High: 1.3176
    Previous Monthly Low: 1.2723
    Previous Daily Fibonacci 38.2%: 1.2669
    Previous Daily Fibonacci 61.8%: 1.2646
    Previous Daily Pivot Point S1: 1.2594
    Previous Daily Pivot Point S2: 1.2552
    Previous Daily Pivot Point S3: 1.2496
    Previous Daily Pivot Point R1: 1.2693
    Previous Daily Pivot Point R2: 1.2749
    Previous Daily Pivot Point R3: 1.2791


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