The bulls continued showing some resilience below the 1.2200 round-figure marks and some renewed US Dollar weakness helped limit any further losses. With Wednesday’s FOMC meeting minutes doing little to dampen prospects for yet another interest rate cut in October, the ongoing slide in the US Treasury bond yields undermined demand for the Greenback and turned out to be one of the key factors providing a minor lift to the major.
It, however, remains to be seen if the pair is able to capitalize on the momentum or the uptick is still seen as an opportunity to initiate some fresh bearish positions amid increasing odds of the UK’s exit from the EU without a deal. Apart from the incoming Brexit-related headlines, Thursday’s packed UK economic docket might further influence the broader market sentiment surrounding the British Pound and provide some short-term trading impetus.
The UK macro data scheduled for release today includes the UK monthly GDP print for August along with Manufacturing and Industrial Production figures for the same month. Recent weakness in UK PMI data has revived recessionary fears in the UK and hence, any positive surprise might be enough to prompt some near-term short-covering move, albeit the attempted recovery seems more likely to remain capped amid persistent Brexit uncertainties.
GBP/USD LONG (Buy)
ENTER AT: 1.2224