GBP/USD Current Price: 1.2327
- UK PM said that there’s “no way” Theresa May's Withdrawal Agreement will be brought back.
- The Scottish High Court ruled that Johnson´s decision to suspend the Parliament is unlawful.
- GBP/USD poised to correct lower in the short-term, no bearish signs.
The GBP/USD pair eased from its recent highs, holding anyway above the 1.2300 figure, as the greenback was better bid throughout the day. The UK didn’t release macroeconomic figures, but as usual, there were news coming from the Brexit front. This Wednesday, the Scottish High Court ruled that PM Boris Johnson´s decision to suspend the Parliament is unlawful, as"it had the purpose of stymying Parliament." Later in the day, the Prime Minister made a Facebook Live video, answering questions. Referring to the Irish border backstop, he said that is going to be removed and that there’s “no way” Theresa May's Withdrawal Agreement will be brought back.
GBP/USD short-term technical outlook
The GBP/USD is trading at daily lows around 1.2320, looking bearish in the short-term, as the latest 4 hours candle opened below a now flat 20 SMA, the first time this happens since September 4th. In the mentioned chart, the Momentum indicator entered negative territory, also for the first time in a week, maintaining its downward slope, as the RSI turned flat around 52. The Pound is being supported by hopes the UK will avoid, once again, a hard Brexit, although the optimism seems to be failing, therefore leading to a downward corrective movement.
Support levels: 1.2310 1.2265 1.2230
Resistance levels: 1.2340 1.2385 1.2420
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.