GBP/USD surrenders a major part of intraday gains, back closer to mid-1.3200s
• Struggles to preserve intraday positive move beyond 1.3300 handle.
• Brexit headlines continue to act as an exclusive driver of the GBP pairs.
The GBP/USD pair erased all of the intraday gains and has now retreated to the lower end of its daily trading range, just a few pips above mid-1.3200s.
The pair failed to capitalize on the mid-European session up-move to levels beyond the 1.3300 handle and continues to be influenced by the incoming Brexit-related news, which remains a key factor influencing sentiment surrounding the British Pound.
In the latest development, Bloomberg recent reported - citing an EU official familiar with talks that the EU leaders were planning to make a "contingent offer" on Brexit extension but the same was unlikely to be finalized at the summit on March 21.
Meanwhile, the UK PM Theresa May's spokesman was noted saying that the PM would write to EU's Tusk before this week's summit to ask for an extension of the looming Brexit deadline on March 29 and was not prepared to revoke Article 50.
The recent price action clearly seems to suggest that unless we get more clarity on the matter, the pair is likely to remain choppy and continue with its good two-way price swings within a broader trading range held over the past few trading sessions.
Technical levels to watch
According to Yohay Elam, FXStreet's own Analyst – “Immediate resistance awaits at 1.13300 that capped cable on Monday and also beforehand. 1.3350 was a peak in late February. The cycle high of 1.3388 is next. Support awaits at 1.3200, that held the pair down in early March and provided support last week. 1.3110 was a separator of ranges in early March. 1.3070 provided support and also converges with the 200 SMA.”