GBP/USD slipped under 1.3100 in the overnight trading session, touching intra-day lows of 1.2988. The Cable has not been helped by rumors that Theresa May could ask the European Union for more time to get agreement on a draft within her Cabinet. The prime minister is set to meet with her ministers again next week, and unless she gets more time from the EU, if they cannot agree on a proposal by then, the writing could be on the wall for the pound. Meanwhile, the USD made substantial gains across the board yesterday, including against the Pound as the Fed left monetary policy unchanged last night.
On the release side, the gross domestic product for the UK, year to year was released this morning, printing at 1.5% vs. a 1.5% read. Furthermore, according to the Office for National Statistics, the UK economy grew by 0.6% in three months up to September, with warm weather boosting consumer spending, below the previous number of 0.7% though. Finally, the trade balance numbers in the UK showed better numbers than expected this morning, helping the Cable to bounce to an intra-day level of 1.3044, but still in an intra-day downtrend.
The technical levels to consider for today in the GBP/USD are 1.3000 on the downside and 1.3069 on the upside.