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• Can not capitalize on the overnight rise led by British Prime Minister May May May's Plan B.
• The flight to global security underpins the USD and exerts some downward pressure.
• The decline remains limited in the UK employment report / wage growth data.
GBP / USD kept its softer tone in the first European session and refreshed its daily lows in the last hour, but quickly recovered some pips thereafter.
Concerns about global growth have heightened demand perceived as a safe haven by the US dollar and have proved to be one of the key factors that did not allow the pair to benefit from the positive rebound of the previous session from support area 1.2830.
This rise comes after Brexit Plan B of British Prime Minister Theresa May, which lacked significant details, but reduced the likelihood of a Brexit without agreement or a second referendum and granted some support to the pound.
At the same time, a downward revision of its global growth forecast for 2019 and 2020 by the IMF on Monday, in the context of an increased slowdown in the Chinese economy, which has regained its lowest annual growth since 1990 , prompted investors to adopt safe haven currencies. Catch up on new gains.
The disadvantage, however, has been diminished, at least for the moment, as market participants now seemed to be waiting for the publication of the UK labor market report, although any immediate reaction is likely to remain short. duration despite the many uncertainties related to Brexit. .
Technical levels to watch
The 1.2830 region could continue to act as immediate support, which, if broken, could make the pair vulnerable and forced to cross the 1.2800 run and aim to test its next support by mid-day. On the rise, immediate resistance is anchored near the 1.2920-30 region, above which the couple is likely to attempt again to conquer the key psychological 1.3000.
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