GBP/USD Review: Sterling slumps as Brexit weighs
|- A light calendar has Brexit back on the headlines.
- The GBP has been hammered by Brexit, slumping economic data for the UK, and a dovish BoE.
The GBP/USD pairing is trapped in bearish action, struggling to hold onto the 1.2950 technical level after sliding further on Monday's action, losing the 1.30 major handle.
Tuesday's lineup is a thin affair, and the only economic data on the docket for the UK today is the Halifax Housing Price Index, a low-tier indicator who's month-on-month reading is expected to slip to 0.2% after coming in at just 0.3% in the previous month.
With major economic events off of the table for Tuesday, this week's focus has shifted back onto Brexit proceedings, which have seen little forward momentum despite the official split day in March of 2019 fast-approaching, and uneasiness at the lack of clarity for what Brexit will ultimately bring is causing businesses in the UK to suffer, while key public figures are delivering warnings about the rapidly-rising odds of a hard Brexit scenario unfolding.
GBP/USD Technical Analysis
The Sterling is back into fresh lows for 2018 as Brexit weighs heavily on the Pound, and technical action remains leaning steeply into the bearish side, and profit-taking is seeing shallow bounces from major lows. A failure by GBP traders to shrug off the current standstill on Brexit talks will see the pair continue stumbling into lows for the year.
GBP/USD Chart, 15-Minute
| Spot rate: | 1.2948 |
| Relative change: | Negligible |
| High: | 1.2948 |
| Low: | 1.2934 |
| Trend: | Flat to Bearish |
| Support 1: | 1.2920 (2018 low; major technical bottom) |
| Support 2: | 1.2904 (S1 daily pivot) |
| Support 3: | 1.2865 (S2 daily pivot) |
| Resistance 1: | 1.3010 (current week high) |
| Resistance 2: | 1.3075 (61.8% Fibo retracement level) |
| Resistance 3: | 1.3172 (previous week high) |
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