GBP/USD stays under pressure around 1.2800

The Sterling remains entrenched into the negative territory so far today, relegating GBP/USD to the lower end of the range in the 1.2800/1.2790 band.

GBP/USD weaker on Brexit jitters, stronger EUR/GBP

Cable has come down to test fresh 2-month lows in sub-1.2800 levels on Wednesday, recording its second consecutive session with losses amidst fresh Brexit concerns as well as a sharp upside in EUR/GBP, fuelled by the bullish momentum around the shared currency.

In addition, the (initial) bid tone around the greenback has also collaborated with the weekly pullback in spot, although the US Dollar Index seems to have met some sellers around session highs near 93.60 earlier in the session.

Further US data saw new home sales contracting 9.4% MoM in July, or down to 571K units, while Markit’s advanced manufacturing PMI is seen at 52.5 in August, missing initial estimates.

GBP/USD levels to consider

As of writing the pair is losing 0.20% at 1.2797 and a break below 1.2747 (76.4% Fibo of 1.2587-1.3266)) would open the door to 1.2587 (200-day sma) and finally 1.2587 (low Jun.21). On the upside, the next hurdle aligns at 1.2881 (100-day sma) followed by 1.2898 (10-day sma) and finally 1.2918 (high Aug.21).