GBP USD jumps to weakening
10/4/2016 1:32:04 PM
The GBP/USD pair stayed under strong selling pressure and is now expanding its slide more below 1.2800 handle.
Currently trading at a fresh multi-decade lows around 1.2770-65 region, the pair failed to expand its recovery move saw during early Asian session on Tuesday and turned sharply lower during early European session. The GBP carry on to lose ground across the board among new Brexit worries after comments from UK Prime Minister Theresa May, over the weekend, improved the probability of a 'hard Brexit'.
In the meantime, the dollar expanded its overnight gains, led by a strong recoil in the US manufacturing activity, and is applying further selling pressure around the major. Following an unexpected weakening in August, the US ISM manufacturing PMI jumped back above 50.00 mark to 51.5 in September.
The constant momentum looks strong enough to carry on dragging the pair more towards a short-term descending trend-channel support near 1.2725. However, with near-term oversold conditions, the pair might see a recoil back towards 1.2800 handle. Any following recovery above 1.2800 handle might now confront strong persistence near 1.2840-45 region.