British five pound banknotes are seen in this picture illustration taken November 14, 2017.
EU Council President Donald Tusk said on Wednesday that he would make no new offer on Brexit and those who promoted Britain's exit without any understanding of how to deliver it deserve a "special place in hell".
The currency has been supported in recent weeks by belief that a last-minute agreement will avert a no-deal Brexit.
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.
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 previously rallied on signs that the March 29 date for Britain to leave the European Union could be pushed back, with traders betting it would reduce the chances of a disorderly no-deal Brexit. Markets fear that Mrs May does not have a firm proposal, which has likely dampened sentiment in Sterling, causing the GBP/USD pairing to hit a two-week low.
"I can understand that speculative market participants are ready to bet on the GBP recovery. 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.
"I do not consider GBP weakness during this time to be sufficiently priced in".
Later today we will see the Bank of England (BoE) release its latest interest rate decision, with expectations for rates to remain steady at 0.75 per cent.
Looking ahead to next week's session, the Pound US Dollar (GBP/USD) exchange rate may strengthen on Monday, following the publication of the UK's latest GDP figures. The next move will probably hinge on how Brexit plays out.
The pound has strengthened in 2019 on expectations that a disorderly no-deal Brexit can be averted but worry among investors has returned with less than two months until Britain is due to exit the European Union and no obvious path to a deal in sight.