GBP/USD analysis: no Brexit deal, no Pound strength
|GBP/USD Current price: 1.3374
- DUP menaced to withdraw support to PM May.
- GBP/USD nearing critical support at 1.3345.
The GBP/USD pair fell to 1.3357 its lowest in a week this Wednesday, on diluting hopes the UK and the EU could reach an agreement on Brexit this week. Despite the UK PM May has told the House of Commons that "very good progress" has been made on Brexit negotiations, details of cross-border trade are yet to be seen. The DUP has menaced to withdraw its support to the PM, amid their belief that an effective custom would divide the Irish Sea. Furthermore, Brexit Secretary David Davis said that the UK will not “leave one part of the United Kingdom behind”, clearly referring to Northern Ireland and its desire to remain in the single market post-Brexit, while failing to clarify the government's assessment of Brexit consequences. The pair trades some 20 pips above the mentioned low, maintaining a short-term negative bias according to technical readings in the 4 hours chart, as the Momentum indicator heads south at fresh 1-month low, while the RSI also heads south, around 40. Also, the 20 SMA has accelerated lower well above the current level, while after breaking lower, recoveries are being contained by sellers aligned around the 50% retracement of the latest bullish run at 1.3385. The immediate support is 1.3345, the 61.8% retracement of the same rally, with a break below it opening doors for an extension toward 1.3250/60 during the upcoming sessions.
Support levels: 1.3345 1.3300 1.3260
Resistance levels: 1.3385 1.3430 1.3465
View Live Chart for the GBP/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.