GBP/USD analysis: Pound dumped on Brexit jitters

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3204

UK White Paper on Brexit's strategy to be out this Thursday.
GBP/USD expected to extend its decline on a break below 1.3189, the weekly low.

The GBP/USD pair approached the 1.3200 in the US afternoon, hit by dollar's broad strength and turmoil in the UK's Government. The kingdom should publish this Thursday the White Paper that draws Brexit´s strategy, which cost the resignation of multiple politicians including high-profile David Davis and Boris Johnson. The document, which points to a softer Brexit and is yet to be approved by the EU, is said to have suffered multiple revisions ever since the Chequers summit at the weekend, and farther away from what Conservatives wish it was. Market players will now focus not only on EU's response to the document but also on May's leadership and a possible no-confidence vote, after already skipping one shortly ago. In the data front, there were no relevant news coming from the UK, and this Thursday, just a minor report will come out, the BOE's Credit Conditions Survey. Meanwhile, the technical picture favors another leg lower for the pair, as in the 4 hours chart, it has remained capped by the 20 SMA, while technical indicators gain accelerate south within negative levels. The weekly low at 1.3189 is the immediate support, with a break below it opening doors for an extension down to 1.3110.

Support levels: 1.3190 1.3155 1.3110

Resistance levels: 1.3245 1.3285 1.3320

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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