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GBP/USD steadies near lows awaiting fresh clues from trade news, UK politics

  • Doubts over Brexit, US-China trade deal continues to question market sentiment.
  • Lack of data continues to highlight political and trade-related news for fresh clues.
  • The GBP/USD pair trades modestly unchanged at 1.2660 ahead of the London open on Wednesday.

The pair slipped to yesterday’s low near 1.2650 during the early Asian session on the UK Mirror’s news of indicating Brexit uncertainty on the opposition Labour party leader Jeremy Corbyn’s support for the second referendum.

Adding to the woes were quarterly results of the Confederation of British Industry (CBI) that portrayed all around pessimism for service sector companies in the UK.

Markets also witnessed risk aversion as the US and China continued indulging into a war of words. Though, the US President Donald Trump’s “successful” Japan trip tamed risk off a bit.

Global barometer of risk sentiment, the US 10-year treasury yield, slipped further beneath October 2017 lows by flashing 2.243% figure.

With most of the latest news being out and loud, investors now await fresh qualitative catalyst as a dearth of economic data on hand hinders the momentum. Among them, Brexit and the US-China trade could gain major attention.

The US Richmond Fed manufacturing index is the only data to watch for the day after yesterday’s disappointment from Dallas Fed manufacturing gauge. The manufacturing index may rise to 6 from prior 3.

Technical Analysis

While 1.2660 and 1.2600 are likely nearby supports for the quote to watch, a break of which could please sellers with 1.2480 rest-point.

Alternatively, a week-long descending trend-line at 1.2715 and February low near 1.2765 can limit immediate upside ahead of challenging buyers with 1.2800 round-figure resistance.