GBP/USD: no news are bad news, no progress in Brexit negotiations

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3135

The GBP/USD pair heads into the US opening trading within negative territory, as the Pound got hit by BOE's credit conditions survey for Q3, and Brexit negotiation's headlines. The Bank of England survey showed that default rates on credit cards and another unsecured lending are on the rise, whilst unsecured lending availability fell at its fastest pace since 2009, as banks tighten up credit scoring criteria. The GBP/USD pair, which advanced up to 1.3264 at the beginning of the day, fell down towards the 1.3200 initially, later plummeting to 1.3132, after Michel Barnier, the EU's chief negotiator, said that they haven't made much progress on Brexit negotiations. David Davis, the UK's representative, added that "the government must be ready for alternatives," if a "mutually beneficial" deal can't be reached. Ahead of US data releases, the pair the pair trades near its daily low, having retreated from a major Fibonacci resistance, the 61.8% retracement of the past week's slump, now nearing the 23.6% retracement of the decline, and gaining bearish traction, poised to resume its decline. The 4 hours chart shows that the price broke below its 20 SMA, whilst technical indicators accelerated south, entering bearish territory, in line with further slides ahead, moreover on a break below 1.3115, the mentioned Fibonacci support.

Support levels: 1.3115 1.3070 1.3026

Resistance levels: 1.3160 1.3210 1.3250

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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