GBP/USD bearish opening gap on weekend's 'hard-Brexit' talk from European leaders

Ross J Burland FXStreet

GBP/USD has opened with a bearish gap, tracing the same themes around Brexit concerns while the greenback remains mixed.

GBP/USD has been as high as 1.2173 and made a low of 1.2138 in early Asia before recovering to 1.2162 recent highs. The last of last week's economic data in the US offered retail sales, consumer confidence and PPI while Yellen gave a dovish speech leaving the dollar mixed.

The market gives the chances of a Fed December hike of about 69%. Meanwhile, weekend headlines came with French President Francois Hollande speaking again over Brexit and the EU, affirming that negotiations need to be seen to the end, " ... while maintaining the principles of the European Union, notably that of free movement."

German Chancellor Merkel was also speaking and said the UK could not get concessions on freedom of movement while retaining full access to the European single market which is also weighing on the pound today. For the week ahead, corporate earning in the US along with The final Presidential debate should be the focus while CPI and Fed speakers are also due.

GBP/USD levels

Intraday gains remain a fade below 1.23 and the pair is offered below the 20 sma on the 1hr sticks at 1.22 the figure. "We continue to see significant technical hurdles to a sustained GBP rally at this point – specifically the strong, bearish alignment of trend strength oscillators which suggest ongoing downside risks and limited scope for GBP gains nearterm," explained analysts at Scotiabank, adding, " We continue to see strong resistance around 1.2300/10 and view short-term GBP gains as a sell. "

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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