Pound Sterling Price News and Forecast: GBP/USD – Brexit talks to reveal next short-term direction
|GBP/USD pulls back from 200-day SMA, maintains bearish pattern [Video]
GBPUSD found a strong resistance at the 200-day simple moving average (SMA) currently at 1.3830, where the 50.0% Fibonacci retracement level of the down leg from 1.4248 to 1.3410 also happens to be. The price jumped slightly above the almost five-month-old descending channel but is retreating again in the very short term. Read more...
GBP/USD Forecast: Brexit talks to reveal next short-term direction
GBP/USD has been moving up and down in a narrow band below 1.3800 since the beginning of the week as investors refrain from making large bets while waiting for fresh Brexit developments. The latest headlines suggest that the UK is not satisfied with the EU's proposals on the Northern Ireland protocol.
David Frost, the British minister responsible for implementing the Brexit deal, said on Monday that the changes offered by the EU don't deliver on the UK's desire of "freeing up" trade in Northern Ireland. "The problem with the EU proposals on Northern Ireland is that they don't go far enough," Frost added. More importantly, Frost rejected the idea of the UK compromising over the European Court of Justice's involvement in overseeing the Brexit deal. Read more...
GBP/USD Price Analysis: Clings to gains below 1.3800, lacks follow-through
The GBP/USD pair gained traction for the second consecutive session on Tuesday and climbed to 1.3800 neighbourhood during the early European session, albeit lacked follow-through. The uptick could be solely attributed to some cross-driven strength stemming from a fresh leg down in the EUR/GBP cross. That said, a modest US dollar strength kept a lid on any further gains for the major amid fresh Brexit jitters.
From a technical perspective, the GBP/USD pair has been showing some resilience near the 200-hour SMA. This is closely followed by the lower boundary of an ascending channel extending from the vicinity of the 1.3400 mark, or September swing lows. The latter, currently around mid-1.3700s, should now act as a key pivotal point for short-term traders. A convincing break below will set the stage for an extension of the recent rejection slide from the very important 200-day SMA. Read more...
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