GBP/USD analysis: EU keeps refusing to renegotiate Brexit
|GBP/USD Current price: 1.2649
- PM May met a wall of rejection in Brussels, no new deal could be discussed.
- UK Parliament wants to vote before year-end, May not willing to submit the deal until January.
The GBP/USD pair surged to 1.2686 at the beginning of the day, as the Pound got support from PM's May winning the leadership vote Wednesday. An optimistic but battered Prime Minister traveled to Brussels but met a wall of rejection to her attempt to get concessions on the current Brexit deal from fellow EU leaders. Meanwhile, the deal still needs to pass the Commons, with lawmakers urging PM to vote before the Christmas recess and Downing Street calling for January as a possible date. The Sterling gave up most of its daily gains to trade back in the lower end of the 1.26 range against its American counterpart. The UK doesn't have relevant data scheduled for this Friday.
The GBP/USD pair trades around 1.2650, developing above a firmly bearish 20 SMA and well below the 200 EMA, which heads marginally lower at around 1.2820, while technical indicators have lost the positive momentum and now hover around their midlines. All of these is not enough to confirm an upcoming decline, yet skews the risk to the downside, also headed in this direction from the fundamental front. The pair has a relevant intraday low at 1.2591, now the immediate support, en route to a retest of the yearly low of 1.2476.
Support levels: 1.2590 1.2555 1.2510
Resistance levels: 1.2665 1.2700 1.2745
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