GBP/USD refreshes session lows, once again fails near 1.2760 supply zone
- Once again fails near the 1.2760 supply zone despite weaker USD.
- No-deal Brexit fears continue to keep a lid on attempted up-moves.
The GBP/USD pair quickly retreated around 40-45 pips during the early European session and dropped to fresh session lows, around the 1.2630-20 region in the last hour.
The pair continued with its struggle to make it through the 1.2760 supply zone and has now drifted into negative territory, with bulls shrugging off the prevailing US Dollar selling bias. The latest dovish shift by the FOMC - signalling a possible interest rate by the end of this year, continued weighing on the greenback and dragged it to near three-month lows on Monday.
However, the fact that Boris Johnson is still seen as the favourite to be the next British Prime minister, fears of a no-deal Brexit held investors from placing any aggressive bullish bet rather prompted some fresh selling at higher levels. It is worth reporting that Johnson has already cleared his stance to leave the EU at the end of October 2019 with or without a deal.
Meanwhile, the latest leg of a sudden drop lacked any obvious fundamental trigger and seemed to be the only factor helping limit further downside, at least for the time being. Hence, it would be prudent to wait for a subsequent price action before traders start positioning for any meaningful intraday momentum amid absent relevant market moving economic releases on Monday.
Technical levels to watch