GBP/USD calm but drooping lower as Europe approaches

• GBP/USD down slightly in Tokyo.
• Brexit infighting continuing to erode Sterling support.

GBP/USD is down softly through Asia, heading into the European session trading very close to 1.3930.

The Sterling gained on Thursday as the Dollar tumbled following a decline in bond yields. The US Dollar is once again being fueled by the cost of Treasury notes, and when yields dropped back down from their recent highs on inflation fears, so did the Greenback, helping send the GBP/USD pair back up from 1.3856.

The pair is now trading sideways with Brexit fears continuing to weigh on the Sterling and has left the pair to spin in consolidation. Theresa May's recent capitulation to EU leader's demands from Brussels regarding EU migrants in the UK. Hardline Brexiteers are decrying this move as yet another undermining of British sovereignty at the hands of PM May's continuous bowing to Brussels' demands.

GBP/USD Technicals

The pair is still trading above the 34 EMA, but bearish pressure is growing following a turnaround from 1.4144. With the 200-day SMA still far below, the overall trend remains bullish, but weak points are beginning to show through. Support rests at 1.3869 and 1.3796 with resistance at the 1.4000 major handle and 1.4064.