British five pound banknotes are seen in this picture illustration taken November 14, 2017.
The pound U.S. dollar exchange rate has continued to slip from yesterday's modest gains, with Sterling taking a hit this morning due to Brexit anxieties and some poor Halifax house price figures.
Sterling steadied on Wednesday but held near a two-week low as investors mulled a report that United Kingdom cabinet ministers are discussing plans to delay Brexit by eight weeks.
The pound has been supported in 2019 by a growing belief that a last-minute agreement will avert a no-deal Brexit.
The Brexit deal negotiations are going nowhere and the UK Prime Minister Theresa May meeting with the European Commission President Jean-Claude Juncker is not expected to bring any major breakthrough, especially in the most debated topic of the Irish border backstop. This comes as Theresa May travels to Brussels for further discussions on the Brexit withdrawal agreement with EC President Jean Claude Juncker, although the European Union has previously ruled out changing the terms of the agreement.
The technical oscillators like the Relative Strength Index (RSI) and Slow Stochastics (SS) are both pointing lower with Slow Stochastics making a bearish crossover in the Overbought territory indicating future price declines towards 1.2900 level representing a 100-DMA on a daily chart and 1.2800 representing 50-DMA on a daily chart next. It was down 0.3 percent against the euro at 87.9 pence.
Sterling slumped to a two-week low on Tuesday after a survey suggested the British economy was flat-lining. "However, that should not prevent the market from reflecting the changing likelihood of a "no deal" proportionately in the GBP exchange rates", said Ulrich Leuchtmann, an FX strategist at Commerzbank in Germany.
Mired with Brexit uncertainty, the Bank of England is expected to hold the monetary policy unchanged voicing Brexit concerns as a major economic risk for the UK. Rates last went up in August 2018.
Nevertheless, the pound could slide if BoE Governor Mark Carney adopts a dovish tone in his speech this afternoon and reiterates his previous warnings about the risks of a "chaotic" Brexit.