GBP/USD in Focus as Brexit Grabs Attention; USD Pullback Continues

GBP/USD Talking Points:

– Volatility remains in the British Pound and that will likely continue in the near-term as Brexit is a focal point for global markets at the moment. The Pound popped-higher yesterday on news that negotiators had come to a deal proposal, and now Theresa May needs to gain the approval of her cabinet, which remains to be seen. Resolution on this item today can keep the door open for the later-month EU-UK summit to further iron out details on what a finalized Brexit might look like.

The US Dollar continues to pull back after the earlier week breakout to fresh yearly highs. There may still be a bull trap lurking here, however, as a portion of unfilled weekend gap remains, and a support bounce that started around yesterday’s Tokyo open has come under pressure as sellers came into offer lower-high resistance on the currency.

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