GBP/USD analysis: Brexit headlines keep denting bulls' interest

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3101

Pound eases on mounting concerns about a no-deal Brexit.
USD recovery tepid, as investors fear escalating trade war, political tensions in the US.

Following a modest uptick in early Asian opening, the GBP/USD pair stabilized in the 1.3140/50 region, to lose ground during US trading hours, amid a broad dollar's recovery, which helped it finish the day with gains against most of its major rivals, and another round of negative Brexit headlines. After ruling out a second Brexit referendum, PM May said that the government is stepping up preparations for a no-deal Brexit, although they are also working hard to avoid it. Jeremy Hunt the new Brexit Secretary said that the EU is to blame if the UK leaves the bloc with no deal. He said that “there is now a very real threat of a Brexit no deal by accident, and this is because many people in the EU are thinking that they just have to wait long enough and Britain will blink”. German Foreign Minister, Maas, quickly responded to such assertion saying that "when it comes to Brexit, there is now a very real risk of a Brexit no-deal by accident,” and that efforts are focused on achieving an ordered Brexit. The GBP/USD pair settled mid-US afternoon around 1.3100, retreating from a 4-day high of 1.3157 but held at the upper end of Friday's range. Technically, the 4 hours chart shows that it's still holding above a mild bullish 20 SMA, but also that technical indicators retreated after a period of consolidation, with the RSI indicator entering negative territory, supporting additional declines ahead on a break below 1.3080 where the pair topped a couple of times last week and is now the immediate support.

Support levels: 1.3080 1.3035 1.3000

Resistance levels: 1.3155 1.3195 1.3240

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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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