GBP/USD Current price: 1.2780
- PM May and EU's Chief Negotiator Junker will meet this Wednesday in Brussels to discuss future ties.
- Spain opposes to the Brexit deal, claims for a clearer picture on Gibraltar.
The GBP/USD pair broke below the 1.2800 figure during US trading hours, undermined by the endless Brexit drama and resurgent dollar's demand. The no-confidence vote of PM May lost its relevance after Sir Graham Brady, chairman of the 1922 Committee of Tory indicated he still hasn't received enough letters to trigger it. But then it came Spain. The country´s government said that will oppose the draft deal if it doesn't include clarity over Gibraltar and would like to treat it as a bilateral issue to be discussed directly with the UK. Introducing changes to the deal approved by the UK Cabinet seems not a smart move from any of both parts, as it will delay negotiations and result in a no-deal split. Meanwhile, PM May and EU's Chief Negotiator Junker will meet this Wednesday in Brussels to discuss future ties between the UK and the EU.
The pair remains subdued near its daily low at 1.2776, by the end of the US session, as dollar's demand increased at the end of the day, adding to the negative picture of GBP/USD. Technical readings in the 4 hours chart maintain the risk skewed to the downside, as the pair is now below a bearish 20 SMA after spending the day struggling around it, while technical indicators resumed their declines, the Momentum extending below its mid-line and the RSI currently at 38. Should the pair fell below 1.2765, a test of the November low at 1.2723 is back on the table, while a relief rally would need to send the pair above 1.2880 to support a more positive outlook ahead.
Support levels: 1.2765 1.2725 1.2680
Resistance levels: 1.2845 1.2890 1.2530
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.