GBP/USD pares the decline from earlier this week as the United Kingdom (U.K.) and European Union (EU) inch closer to reaching a deal, but the near-term outlook for the pound-dollar exchange rate remains mired by the recent series of lower highs & lows in the exchange rate.

Progress towards a workable Brexit deal should heighten the appeal of the British Pound, with more details likely to emerge at the EU Summit scheduled for December 14-15, and GBP/USD may stage a more meaningful rebound ahead of the Bank of England’s (BoE) last 2017 interest rate decision on December 14 as the central bank notes that the ‘most recent assessment of the outlook for inflation and activity, contained in the November Inflation Report, was conditioned on a market path that implied two additional 25 basis point increases in Bank Rate over the three-year forecast period.’

However, GBP/USD may continue to consolidate following the failed run at the 2017-high (1.3657) as the pair snaps the monthly opening range and starts to carve a bearish sequence. Varying market conditions require alternative strategies as trends change. Want a better understanding of the different approaches for trading?

GBP/USD Daily Chart

AUD/USD stands at risk for further losses as it snaps the opening range for December, and the pair may continue to exhibit a bearish behavior over the remainder of the year should the Reserve Bank of Australia (RBA) tame expectations for higher borrowing-costs.