GBP/USD – Fundamental Outlook
The GBP/USD pair extended its intraday retracement slide and sank to new session lows, around the 1.2670-65 region in the previous hour. Seems like, the UK political risk and growing odds of a no deal Brexit are hitting the Sterling hard. There are substantial chances that the succeeding UK PM will be a Brexiteer, pushing market participants to reassess the likelihood of a no-deal Brexit. Thereby, the fact that Brexit deadlock will remain despite a new leader turned out to be one of the key determinants weighing on the British Pound.
GBP/USD – Technical Outlook
GBP/USD is trading below the weekly pivot level at 1.2707. The British Pound is beneath pressure as the political future of the UK remains unknown after Prime Minister declared that she would step down on June 7.
The GBP/USD has formed a “dark cloud cover” pattern on the chart. It’s a mark that bears remain active and sell the Pound on its attempts to correct higher. The sterling may retest the 78.6% Fibo level at 1.2625. The fall below the latter will open the way down for an even more significant decline to 1.25.
Key Trading Level: 1.2698
Consider staying bearish 1.2750 and bullish over 1.2660 today. The GBP/USD can go after 1.2619 on the violation of 1.2660. All the best!