GBP/USD Current price: 1.2866
- Scottish First Minister Nicola Sturgeon said that the Brexit deal is full of ‘unicorns’ rather than facts.
- Spain said to likely vote against the current Brexit proposal amid lack of clarity on Gibraltar.
The Sterling Pound was the best performer this Thursday, rallying during London trading hours up to 1.2927 against the greenback, its highest for this week, amid encouraging Brexit headlines. News agencies leaked the EU's declaration on the future bilateral relationship with the UK, in where the Union talks about "a free trade area, combining deep regulatory and customs cooperation." Details on how this will done, or when, however, were missing. The bullish movement faded, with the pair settling in the 1.2880 price zone. Meanwhile, the deal meats opposition from locals and foreign. Scottish First Minister Nicola Sturgeon said that the Brexit deal is full of ‘unicorns’ rather than facts, and will damage the local fishing industry. Also, and according to people familiar with the matter, Spain will likely vote against the current proposal amid the lack of clarity on Gibraltar. UK PM May spoke before the UK Parliament once again but failed to convince MPs. In fact, half of Tory backbenchers have publicly indicated that they won't vote for the deal. Next chapter on the Brexit drama will be written over the weekend.
The GBP/USD pair holds on to gains ahead of the Asian opening, but the upward potential seems well limited according to technical readings in the 4 hours chart, as the rally stalled well below a mild bearish 200 EMA, although above a directionless 20 SMA, while technical indicators entered positive ground before losing directional strength. Given the Brexit situation, the upward potential for the Pound is quite limited, with spikes being taking as selling opportunities by speculative interest.
Support levels: 1.2840 1.2800 1.2765
Resistance levels: 1.2890 1.2930 1.2965
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