The GBP/USD pair attracts some buyers near the 1.2615-1.2610 area, or its lowest level since mid-May touched during the Asian session on Thursday and reverses a part of the previous day's steep decline.
GBP/USD bounces off its lowest level since mid-May, albeit lacks any follow-through buying. The fundamental backdrop warrants some caution for bulls ahead of the key US macro data. The technical setup suggests that the path of least resistance for the pair is to the downside. The GBP/USD pair attracts some buyers near the 1.2615-1.2610 area, or its lowest level since mid-May touched during the Asian session on Thursday and reverses a part of the previous day's steep decline.
Apart from this, rising bets for a rate cut by the Bank of England in August could undermine the British Pound and further contribute to capping the GBP/USD pair ahead of the UK general election on July 4. From a technical perspective, the overnight breakdown and close below the 1.2650-1.2645 confluence – comprising 50-day and 100-day Simple Moving Averages was seen as a fresh trigger for bearish traders.
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