GBP/USD: remains with a bearish bias, eyes on 1.2810 support

Currently, GBP/USD is trading at 1.2852, down -0.22% on the day, having posted a daily high at 1.2929 and low at 1.2831.

Moody's: UK's creditworthiness under pressure from Brexit-related uncertainty

GBP/USD been in a chop between 1.2831/61, unable to find direction after the sell-off from 1.2929. Ben Broadbent was speaking earlier and was warning about the risk that Brexit will be to UK trade. However, Haldane was hawkish again. The drop in sterling was not fueled by much in the way of fundamentals, but a technical drop that has left the squeezed out bulls licking their wounds as we wait for this week's key data for the UK in the employment figures due tomorrow.

GBP/USD levels

From a technical perspective, Valeria Bednarik, chief analyst at FXStree explained that the pair has broken below the 38.2% retracement of its latest bullish run, now finding resistance around it at 1.2860. "In the 4 hours chart, the 20 SMA maintains a strong bearish slope above the current level, whilst the Momentum indicator continues to lack direction around its 100 level, but the RSI hovers near oversold levels, this last supporting additional declines ahead.  The 50% retracement of the same rally stands at 1.2810, now the immediate support."