GBP/USD: BEARS ARE THE BOSS FOR NOW...CAN THE GDP STOP THE SLIDE...???

The pair is trading around 1.2450, close to the two-year lows on the resurgence of the Brexit uncertainty. The overnight comments by Irish Finance Minister, saying that the prospect of disorderly Brexit is now a significant risk, added to the market concerns and continued weighing on the Sterling. The already weaker sentiment deteriorated further in the wake of the recent disappointment from the UK macro data. On the other hand, the ongoing recovery in the US Treasury bond yields - triggered by diminishing odds for an aggressive Fed rate cut move later this month, underpinned the US Dollar demand and further collaborated to the pair's slump to the lowest level since the early-January flash crash low. Going ahead for today it will be a very busy UK Data Docket, with most affecting of all will be the UK GDP figures, which is widely expected to rise but will that enough to pull the cable currency higher, that is to watch out for. on the other side,  in the North-American session, the Fed Chair Jerome Powell's congressional testimony, followed by the release of the minutes of the June FOMC meeting will influence the USD price dynamics very heavily. Looking at the technical picture, the pair has been trending lower along a short-term descending trend-channel formation on the daily chart. Only a convincing break above the 1.2500-1.2530 region may trigger a bout of short-covering move and support prospects for additional recovery, which for now seems very difficult.

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