• Investors now seemed to look past the latest Brexit headlines.
• Subdued USD demand/US bond yields fail to provide any impetus.
• Traders look forward to Fed speaker for short-term opportunities.
The GBP/USD pair extended its consolidative price action and remained confined in a narrow trading band near the key 1.3500 psychological mark.
After yesterday’s good two-way moves, led by the incoming Brexit headlines, the pair seemed to stabilize around the 1.3500 handle and had a rather muted reaction to Thursday’s upbeat release of Philly Fed Manufacturing Index.
Against the backdrop of recent BoE dovish tilt, reemerging Brexit concerns kept the British Pound on the back-foot. However, a subdued action around the US Treasury bond yields forced the US Dollar bulls to take some breather and was seen protecting any immediate downside for the major.
In absence of any major market moving economic releases, traders are likely to take cues from speeches by influential FOMC member – Cleveland Fed President Loretta Mester, due to speak in a short while from now, and Fed Governor Lael Brainard, scheduled later during the early NA session.
Technical levels to watch
Weakness back below the 1.3500 handle could get extended towards 1.3480 level before the pair eventually drops back to a 2-week-old trading range support near mid-1.3400s. On the upside, the 1.3555-60 region (200-day SMA) now seems to have emerged as an immediate hurdle and is followed by a strong resistance near the 1.3600-1.3610 zone.