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