GBP/USD analysis: bears determined to challenge 1.3000

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3073

No progress in Brexit Summit, Irish PM Varadkar preparing for a no-deal scenario.
MPC's Haldane hawkish vote, not that hawkish after all.

The GBP/USD pair recovered from a fresh 2018 low of 1.3049, and while it later recovered some ground, it was unable to beat sellers around the 1.3100 figure. The Sterling was affected by comments from BOE's Chief Economist Andy Haldane, who said that his vote for a rate hike should not be considered “surprising or radical” after a decade of ultra-loose monetary policy, later adding that his vote doesn't mean he now believes that the BOE needs to raise rates at a faster pace. In the Brexit front, things are not much better as the EU Summit begun, as UK PM May said that both parts want a faster pace in Brexit negotiations, but with no signs that that is actually happening. Moreover, Irish PM Varadkar hit the wires saying that he has started to make preparations for the unlikely scenario of Britain crashing out of the EU without a deal. The 4 hours chart for the pair shows that it's developing well below a bearish 20 SMA, while technical indicators hold within oversold readings, the Momentum recovering modestly and the RSI consolidating around 26, favoring additional declines ahead on a break below the mentioned yearly low.

Support levels: 1.3050 1.3010 1.2970

Resistance levels: 1.3105 1.3140 1.3185

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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