GBP/USD probing session lows near 1.3830

• Cable fades the bull run to 1.3860 and turns negative near 1.3830.
• Brexit concerns continue to linger despite the recent up move in spot.
• US Factory Orders and the speech by FOMC’s L.Brainard next on tap.

The Sterling is now losing the grip vs. the greenback and is forcing GBP/USD to return to the negative territory in the 1.3830 area, or session lows.

GBP/USD focused on Brexit, US docket

After three consecutive daily advances, Cable is now facing some selling pressure while the greenback is alternating gains with losses in the 90.00 neighbourhood when tracked by the US Dollar Index (DXY).

Notwithstanding the positive performance in past sessions, the British Pound looks fragile and remains under pressure amidst the lack of sustainable progress in the Brexit negotiations and internal divisions in May’s cabinet.

On the positioning front and following the latest CFTC report, GBP speculative net longs have climbed to 2-week tops in the week to February 27.

In the data space, US Factory Orders and the speech by FOMC’s L.Brainard (permanent voter, (mega) dovish) are due later today on the USD-side. In the UK, the Annual Budget Release is expected tomorrow ahead of Industrial/Manufacturing Production and Trade Balance figures for the month of January.

GBP/USD levels to consider

As of writing, the pair is losing 0.12% at 1.3832 and a breakdown of 1.3809 (55-day sma) would aim for 1.3712 (low Mar.1) and finally 1.3658 (high Sep.20 2017). On the flip side, the immediate hurdle lines up at 1.3874 (10-day sma) would aim for 1.3914 (21-day sma) and then 1.4071 (high Feb.26).