GBP/USD eases to fresh 10-day lows, approaches 1.30 handle
After spending the first half of the day directionless around mid-1.30s, the GBP/USD came under a fresh selling pressure when American traders hit their desks and refreshed its session low at 1.3014. As of writing, the pair was trading at 1.3020, losing 0.18% on the day.
Although there wasn't a clear catalyst that may have triggered this recent downfall, the uncertainty surrounding the Brexit process continue to keep investors away from the cable. According to an article in the Sunday Telegraph, There May was reported to be willing to pay for a divorce bill of up to €40bn (£36bn). Although a Downing Street source claimed, as reported by the Telegraph, that the figure, which was mentioned by Brussels sources, was inaccurate speculation, the cable is having a difficult time finding any market interest.
Minneapolis Fed President Neel Kashkari and St. Louis Fed President James Bullard will be delivering their remarks later in the session. The economic calendar won't be offering any data that could impact the price action in the remainder of the day or Tuesday, which leaves the pair at the mercy of the Brexit developments.
Technical outlook
Despite that last drop, the RSI on the daily graph is still moving near the 50 mark, showing near-term neutral conditions. 1.3000 (psychological level) could be seen as the first support ahead of 1.2935 (50-DMA) and 1.2895 (100-DMA). On the upside, resistances align at 1.3075 (20-DMA), 1.3160 (Aug. 4 low) and 1.3260 (Aug. 3 high).
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