GBP/USD bounces-back to 1.2740 post-May’s comments

• Bears keeping control amid UK PM May’s Brexit comments, risk-off.
• Brexit uncertainty to continue to play a spoilsport ahead of ECJ ruling and Parliament vote next week.
• Greenback rebounds heading towards the US ISM services PMI, Powel speech.

The GBP/USD pair witnessed good two-way trades last hour, now bouncing-back towards the 1.2725/30 region following a test of the 1.2700 support.

The volatile trading seen in the spot can be mainly attributed to latest developments surrounding the Brexit vote, with the UK PM Theresa May sounding very firm on her Brexit deal, citing that “it’s my deal, no deal, or no Brexit at all”.

Her comments knocked-off the Cable to the 1.2700 level before reversing quickly on the headlines that the European Court of Justice (ECJ) will release its ruling on Article 50 of the Treaty of European Union on December 10 at 8:00 GMT. Note that the ECJ aide said earlier this week that the UK could unilaterally revoke Article 50 if it chooses so.

However, GBP/USD is likely to remain exposed to downside risks amid looming Brexit uncertainty ahead of the Dec. 11^th meaning vote and as the US dollar remains broadly bid amid a risk-off market environment, fuelled by the latest US-China feud. China is enraged after the US asked Canada to arrest the Chinese company, Huawei, CFO and called for extradition.

Looking ahead, fresh Brexit headlines will continue to influence the pair until the release of the Fedspeaks and the US macro news, including the ISM non-manufacturing PMI release.

GBP/USD Technical Levels