GBP/USD analysis: Barnier rejects May's plan, Pound down

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3109

EU’s chief Brexit negotiator Barnier said that the UK customs plan is not a workable solution.
GBP/USD holding above 1.3100, but increasingly bearish according to intraday charts.

The GBP/USD pair peaked at 1.3212 at the beginning of the day, its highest for this week but gave up gains and trimmed all of its weekly gains, partially due to renewed dollar's strength post-ECB's decision, and partially due to renewed Brexit-related fears. EU’s chief Brexit negotiator, Michel Barnier, said that the UK customs plan is not a workable solution, tearing apart May's white paper. Among other things, Barnier said that the bloc won't allow a non-member state to collect tariffs on its behalf, adding that he doubts the Irish border backstop could be applied to the whole kingdom. While affirming that some progress has been made, he added that "we are not at the end of the road yet." Brexit negotiations will resume mid-August. The pair is close to the 1.3100 figure, holding a few pips above this last ahead of the Asian opening, and looking poised to extend its decline as in the 4 hours chart, the pair broke below a now flat 20 SMA, while technical indicators have turned sharply lower, now breaking through their midlines, in line with a continued decline for this Friday, particularly on a break below 1.3090.

Support levels: 1.3090 1.3045 1.3010

Resistance levels: 1.3145 1.3190 1.3230

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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