GBP/USD analysis: bears took over on Brexit jitters

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3021

Brexit negotiations stalemate and poor UK Retail Sales send Sterling to fresh weekly lows.
November Brexit summit canceled after UK's PM May failed to offer something new.

The Sterling plunged against all of its major rivals after a crucial Brexit summit ended with UK's PM May offering nothing new and EU leaders canceling plans for a special summit next November. Negotiations, however, continue and EU leaders are willing to reconsider a summit next month, should a breakthrough is reached. Adding to Pound's woes, UK Retail Sales were much worse-than-expected, with the core reading down in September 0.8% from August, and up 3.2% from a year earlier, this last, missing the market's forecast of 3.7%. August readings were revised higher, but market players remained focused on Brexit jitters.

The GBP/USD pair fell to 1.3015 as the greenback resumed its advice in the US afternoon, mostly backed by a run to safety after worldwide equities fell, following the lead of tumbling Chinese stocks. The 4 hours chart for the pair shows that it broke below the 200 EMA, now further below a bearish 20 SMA, as technical indicators maintain sharp downward slopes at fresh 2-week lows. The pair has its next support at 1.3010 where in the mentioned chart the pair presents multiple intraday highs and lows since mid-September. A break below it should keep the pair under pressure heading into the weekend.

Support levels: 1.3010 1.2980 1.2945

Resistance levels: 1.3085 1.3130 1.3177

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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