GBP/USD analysis: no Brexit progress becoming a major issue
GBP/USD Current price: 1.3311
- 10 months to go for Brexit, and no trade deal, neither an Irish border solution.
- GBP/USD stuck at yearly lows in thin holiday trading.
The GBP/USD pair saw little action this Monday, having spent the day in a tight range right above the 2018 low set last Friday at 1.3293. As the date for the UK leaving the EU looms, with just 10 months to go, the lack of progress in negotiations about the future trade relationship has become a major concern. Brexit secretary Boris Johnson has told PM May that the UK must come "fully out" of the EU customs union, in benefit of potential new trade deals with South American countries, after his trip through the region, adding pressure on PM May. The Irish border issue also remains unsolved, with none of the parts involved wanting a hard-border, the only solution on the table for the time being. The UK macroeconomic calendar has nothing of interest to offer this Tuesday, leaving Pound in the hands of sentiment and Brexit headlines. In the meantime, the short-term picture for GBP/USD is bearish despite the holiday left it with no directional strength, given that in the 4 hours chart, a modesty bearish 20 SMA, currently at 1.3340 keeps capping the upside, while technical indicators have turned modestly higher, but remain well below their daily highs and within negative levels.
Support levels: 1.3280 1.3245 1.3210
Resistance levels: 1.3340 1.3385 1.3410
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.
