GBP/USD analysis: Weekend EU summit at doubt

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2779

German Chancellor Merkel will travel to Brussels only if there's a deal to sign.
GBP/USD nearing November low at 1.2723, break below exposes 1.2661, yearly low.

The GBP/USD pair spent the first half of the day trading in a tight 40 pips' range, as despite easing demand for the greenback Brexit woes limited Sterling. UK PM May traveled to Brussels to meet EU's Juncker and discuss the future relation of both economies in the post-Brexit era. However, the Pound was weighed by headlines suggesting that the Sunday summit is not yet clear. According to news agencies, German Chancellor Angela Merkel will not travel to Brussels on Sunday unless there is an agreement ready to sign. To confirm the weekend summit, the Brexit deal should be completed this Thursday. The Juncker-May

Concerns about Brexit and a bout of dollar buying mid-US afternoon sent the pair to a fresh weekly low of 1.2763 with the pair trading nearby by the end of the US session. The short-term picture for the pair offers a neutral-to-bearish stance as, in the 4 hours chart, the pair was unable to advance beyond a mild bearish 20 SMA, while technical indicators remain within negative ground, lacking directional strength. The key support is now 1.2723, the low set this month, with a break below it opening doors for a re-test of the yearly low of 1.2661.

Support levels: 1.2765 1.2725 1.2680

Resistance levels: 1.2810 1.2845 1.2890

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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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