GBP/USD: SELL Signal and Price Drop...

he GBP/USD pair is facing downward pressure, with bears attacking the 1.2000 psychological level over the past three days. Brexit-related challenges and a rally in US Treasury bond yields are contributing to the decline, although there is limited action in the market ahead of the London open on Thursday. The Telegraph reported that the Democratic Unionist Party is dissatisfied with parts of the EU-UK departure terms over the Northern Ireland Protocol, while a Financial Times survey found that two-thirds of UK businesses believe government plans to disentangle British and EU law will cause more uncertainty and not increase economic growth. Bank of England Governor Andrew Bailey's neutral comments contrast with the hawkish remarks from Minneapolis Federal Reserve President Neel Kashkari, and the UK S&P/CIPS Manufacturing PMI data was downbeat compared to the upbeat details of the US ISM Manufacturing PMI. Additionally, inflation concerns and fading optimism over China's economic growth, as well as Sino-American tensions, are also putting downward pressure on the GBP/USD pair. US Treasury bond yields rose, reflecting market fears and weighing on S&P 500 Futures. The US Dollar Index (DXY) bounced off a one-week low to 104.60, up 0.17% intraday, amid a risk-off mood and firmer yields. With a light calendar, GBP/USD moves may be restricted and could remain southwards before Friday's key US ISM Services PMI and final readings of the UK S&P Global/CIPS Services PMI for February.