GBP/USD touches a low of 1.2879 before bouncing back a little
The momentum in the pair continues to side with sellers following the break below the key daily moving averages and now price is looking to take out the 1.2900 handle as well as support from the 23.6 retracement level as well.
The dollar is extending gains after a solid showing in overnight trade and it is precipitating a further fall in cable which could open up a path towards support around 1.2786 next.
The only saving grace for the pair is likely to come from the pound side of the equation as recent Brexit rumours suggest that May is looking to try and bring the Brexit withdrawal agreement bill back to a vote some time next week. Latest word is that she may exclude the Irish backstop from the bill to try and shore up support temporarily but I reckon in the grand scheme of things, it will do little to aid her cause to win the overall Brexit battle.
US durable goods orders data for March will be the next key risk event today so be wary of that later for any further clues on dollar direction today. But as highlighted earlier, the dollar momentum seems rather strong this week and even a bit of a setback later may just see the dollar retrace slightly before resuming gains again to end the week.
