GBP/USD Current price: 1.2765
- UK Brexit Secretary Raab resigned, followed by several other members of the government.
- GBP/USD nosedived on Brexit, May's future uncertainty.
Chaos is the only word capable of describing what's going on in the UK. The enthusiasm about a Brexit deal from 24 hours ago is just an old memory. After PM May announced her cabinet agreed the latest deal approved by the EU, Brexit Secretary Dominic Raab resigned. " I cannot in good conscience support the terms proposed for our deal with the EU," he said. His decision was followed by several other ministers and ministerial aides, multiple criticisms from fellow party members and opposition. Chances that the deal will pass the Parliament are pretty much null, as it fell way short of Brexit promises. The GBP/USD collapsed, losing over 250 pips ever since Raab quit. Furthermore, a no-confidence letter was sent to the Parliament. 48 letters are the magic number that could put May outside the UK Government.
Adding to Sterling woes, UK Retail Sales missed expectations, in October, decreasing 0.5% when compared to the previous month, rising by 2.2% YoY. There are no macroeconomic news scheduled in the UK for Friday.
The GBP/USD pair was again subject of high volatility throughout the day. It traded as low as 1.2729, its lowest for this November, recovering just modestly from such low ahead of the close, still well below the 1.2800 level. Technical readings are now aligned with the fundamental background, something that implicates a steeper decline ahead. The 4 hours chart shows that the battle around the 200 EMA was lost by bulls, with the pair now roughly 200 pips below it, also below a bearish 20 SMA. Technical indicators in the mentioned chart maintain their strong bearish slopes near oversold readings. A break through the mentioned daily low, exposes 1.2690, October monthly low, while below this one, 1.2661, the year low posted last August comes next.
Support levels: 1.2730 1.2690 1.2660
Resistance levels: 1.2810 1.2855 1.2900
View Live Chart for the GBP/USD
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