On Friday in the European market, the GBP/USD oscillated around the 1.2760 level. The short-term trend of the British pound was extremely volatile. The exchange rate once touched 1.2709, refreshing the intraday low, and then quickly recovered all the losses. The UK was announced in the session.GDPThe data is 0.3% in line with expectations.AnalystIt is said that the current trend of the pound is affected by the fundamental news of the Brexit negotiations.
Analysts said that despite the weakness of the US dollar index, the pound continued to be under selling pressure, as the uncertainty brought about by the Brexit negotiations could not be dissipated.
(£/USD 1 hour chart, source: FX168 Financial Network)
Analysts pointed out that considering that the pound failed to effectively stabilize the 1.28 integer above, the exchange rate may gradually fall under pressure.
In addition, the hourly chart shows that the technical indicators are currently in a negative territory, and the sky-level technical indicators have also lost upward momentum, which further exacerbates the pound's bearish bias.
The exchange rate may be further down to the 1.2650/55 level. The lower target is at the 1.2600/10 level. If the exchange rate falls below the 1.27 mark, it will attract technical selling.
DanskbankSaid that the focus of the pound should be concerned about the UK vote on the Brexit agreement next Tuesday. The bank's analysts expect Britain's Prime Minister Theresa May to be defeated.
Affected by this factor, the downside risk of the pound is intensifying, and the opportunity for a rebound may be further delayed.
(Article source: FX168)