GBP/USD analysis: bears took over on Brexit jitters
|GBP/USD Current price: 1.3021
- Brexit negotiations stalemate and poor UK Retail Sales send Sterling to fresh weekly lows.
- November Brexit summit canceled after UK's PM May failed to offer something new.
The Sterling plunged against all of its major rivals after a crucial Brexit summit ended with UK's PM May offering nothing new and EU leaders canceling plans for a special summit next November. Negotiations, however, continue and EU leaders are willing to reconsider a summit next month, should a breakthrough is reached. Adding to Pound's woes, UK Retail Sales were much worse-than-expected, with the core reading down in September 0.8% from August, and up 3.2% from a year earlier, this last, missing the market's forecast of 3.7%. August readings were revised higher, but market players remained focused on Brexit jitters.
The GBP/USD pair fell to 1.3015 as the greenback resumed its advice in the US afternoon, mostly backed by a run to safety after worldwide equities fell, following the lead of tumbling Chinese stocks. The 4 hours chart for the pair shows that it broke below the 200 EMA, now further below a bearish 20 SMA, as technical indicators maintain sharp downward slopes at fresh 2-week lows. The pair has its next support at 1.3010 where in the mentioned chart the pair presents multiple intraday highs and lows since mid-September. A break below it should keep the pair under pressure heading into the weekend.
Support levels: 1.3010 1.2980 1.2945
Resistance levels: 1.3085 1.3130 1.3177
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