The GBPUSD pair turned around course and dipped to a three-week low at 1.2832 before recovering. The USD continues to hold firm and that is sending the pair lower on the day to test support near 1.2831.
With yesterday’s decay, price broke underneath the 100-day MA which implies that the bias in the pair has turned progressively bearish and the near term bearish bias will just give sellers restored energy to keep price lower from here.
The Brexit impasse on the Irish backstop, with the UK PM May attempting her best to avoid disorderly Brexit, continues to stay a drag on the GBP. Looking forward, the GBP markets will keep on following the USD dynamics and risk trends in the midst of an absence of primary macro news. The BoE Governor Carney is due to speak later today.