GBP/USD Forecast: Waiting for Brexit talks’ updates

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3024

EU’s chief negotiator Michel Barnier decided to extend his stay on London.
UK October CBI Distributive Trade Survey on realized sales this Tuesday, seen up a modest 1%.
GBP/USD is gaining bearish strength but holds above 1.3000 for now.

The GBP/USD pair is ending Monday with modest losses around 1.3020, partially affected by the renewed dollar’s demand and partially due to Brexit concerns. The pair surged to a daily high of 1.3074 as news that EU’s chief negotiator Michel Barnier decided to extend his stay on London after weekend talks, and speculative interest understood it as progress. The pair later eased as UK PM Boris Johnson’s spokesman said that there is “much work to be done” and that significant gaps remain in the most difficult areas.

The UK didn’t publish macroeconomic data on Monday but will release the October CBI Distributive Trade Survey on realized sales this Tuesday, seen up a modest 1% from 11% in September.

GBP/USD short-term technical outlook

The GBP/USD pair is holding above the 1.3000 figure, although it briefly pierced the level a couple of times throughout the day to bottom at 1.2992. The risk has turned to the downside, as, in the 4-hour chart, a mildly bearish 20 SMA capped the upside. Technical indicators hold within negative levels, although their directional strength is limited. A steeper decline could be expected on a break below 1.2980.

Support levels: 1.2980 1.2930 1.2880

Resistance levels: 1.3060 1.3115 1.3150

View Live Chart for the GBP/USD

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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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