GBP/USD Current price: 1.3357
- Chances of a post-Brexit deal seem to be diluting.
- UK Chancellor Sunak said the UK should not stretch a Brexit deal at any cost.
- GBP/USD is losing its bullish potential, could turn bearish on a break below 1.3290.
The GBP/USD pair is down this Thursday, trading around 1.3360 ahead of the Asian opening. The pound was unable to extend its gains beyond 1.3400 against the greenback after the EU’s chief negotiator Michel Barnier threatened to pull off Brexit talks unless the UK is willing to concede on the critical issues. UK Chancellor Sunak said this Thursday that the UK should not be stretching for a Brexit deal at any cost, somehow cooling hopes for a post-Brexit trade deal.
The UK didn’t publish macroeconomic data on Thursday and has little to offer on Friday, as it will release November Nationwide Housing Prices. Brexit-related headlines will continue to determine GBP/USD’s direction.
GBP/USD short-term technical outlook
The GBP/USD pair is losing its bullish potential but at the same time remains far from bearish. The 4-hour chart shows that the pair is stuck around a flat 20 SMA, while the longer moving averages keep heading firmly higher well above it. The Momentum indicator bounced from its 100 line, while the RSI is flat around 52. The bearish case will firm up on a break below 1.3290, the immediate support level.
Support levels: 1.3290 1.3250 1.3205
Resistance levels: 1.3365 1.3410 1.3460
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