GBP/USD analysis: little changed, still at risk of falling

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2983

UK PM May repeated that a no-deal is an unwanted outcome, but that Britain is prepared for it.
UK September Markit Services PMI resulted at 53.4, missing expectations of 54.0.

The GBP/USD pair seesawed between gains and losses but was unable to move far from the 1.3000 level this Wednesday, settling at the end of the day a handful of pips below it. The Sterling came under selling pressure early London session, as the UK September Markit Services PMI resulted at 53.4, below the previous 54.3 and also missing expectations of 54.0. PM May offered a speech in the final day of the Conservative Party annual conference but didn't said much new: she stuck to the Chequers' plan, repeating that a no-deal Brexit will be a bad outcome for both parts, but also that they are ready to leave with a no-deal rather than break up the country. There are no macroeconomic events scheduled in the UK for this Thursday.

As for the technical perspective, the pair retains the bearish tone, as the intraday attempts to regain the upside were contained by a bearish 20 SMA which maintains its bearish slope below a directionless 200 EMA, this last around 1.3035, with the risk skewed to the downside as long as below this last. Technical indicators in the mentioned chart remain in negative territory with modest downward slopes, lacking enough directional strength to confirm additional slides ahead. A slide through the daily low should favor a downward extension aimed to 1.2880, the 61.8% retracement of the 2016/18 rally.

Support levels: 1.2960 1.2920 1.2880

Resistance levels: 1.3035 1.3065 1.3100

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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