GBP/USD Forecast: Cable is stuck to the bottom of the range as Brexit woes persist

The GBP/USD is trading down 0.12% at around $1.3370 level against the US Dollar as Brexit uncertainty persists.

Cable continues to fall for the third consecutive day with the European summit nearing and the final deal between the UK and the EU is still conditioned by resolution of Irish border issue.

The UK Prime Minister Theresa May is reportedly offering Dublin a compromise solution, but with the chief negotiator Michel Barnier saying there are 48 hours remaining for the resolution, the risk of failure increased.

Irish Prime Minister Leo Varadkar spoke to Theresa May on Wednesday afternoon and will conduct further talks on Thursday. Varadkar and the European Commission officials are willing to be flexible on the deadline they’ve set ahead of a key summit next week as they are aware of how important it is to move Brexit talks to trade.

The GBP/USD has formed a peak at $1.3558 and it is falling lower since then. The GBP/USD currency pair was facing strong resistance at $1.3550 and any convincing break above is likely to take the pair to round big figure of $1.3600 before facing 2017 peak of $1.3660. 

On the lower side, near-term support is around 1.3360 that has served previously as a strong resistance supported also by the channel trendline higher. With GBP/USD breaking below $1.3360 the currency pair is seen attacking lower levels of $1.3300-$1.3230. The major weakness can be seen below 1.3230.

GBP/USD 4-hour chart

Source: FXStreet

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