GBP/USD analysis: next relevant support at 1.2785

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2817

Brexit uncertainty weighs on Sterling, GBP/USD at fresh monthly lows.
UK Brexit Secretary Raab blames EU's "intransigence" for the lack of progress.

The Sterling took another dive against the greenback amid the latest broad strength, with the GBP/USD pair plummeting to 1.2808, its lowest since early September. Brexit negotiations remain in a stalemate, and the latest header on the issue referred to UK's Brexit Secretary Dominic Raab, who said that the EU's "intransigence" is preventing them from achieving a deal. The UK calendar remained empty and doesn't have relevant data to offer this Friday. Brexit uncertainty will likely maintain the Pound under pressure.

From a technical point of view, the slump accelerated after the pair broke below the 61.8% retracement of the 2016/18 rally at around 1.2880, and has room to extend its decline, particularly on a break below 1.2785, September monthly low. In the 4 hours chart, the 20 SMA heads south almost vertically far above the current level, while technical indicators are currently losing downward strength but in extremely oversold levels, with no signs of changing course. Some consolidation could be expected, but the bearish potential will be strong as long as the price remains below the mentioned 1.2880 price zone.

Support levels: 1.2810 1.2785 1.2740

Resistance levels:1.2850 1.2880 1.2925

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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