GBP/USD: Brexit drives sterling lower, bullish triangle at risk

GBP/USD has been retreating from the highs as Brexit talks remain in darkness. Furthermore, Black Friday's 4-hour chart is showing that cable is at risk of falling off the ascending triangle, Yohay Elam, an Analyst at FXStreet, reports. 

Key quotes

“Chief EU Negotiator is traveling to London for in-person talks after completing his quarantine, yet that is the only bit of positive news coming from the negotiations. UK Prime Minister Boris Johnson has said that the likelihood of a deal depends on the EU and that Britain would prosper with or without an agreement. Similar to European Commission President Ursula von der Leyen, Barnier was quoted as saying he does not know if a deal is possible. Yet there while both sides continue talking, there is hope.” 

“With the upcoming expiry of the nationwide lockdown, London will return to Tier 2 rather than struggle under more severe Tier 3 terms. UK coronavirus cases continue their downtrend.” 

“While COVID-19 statistics are moving in the wrong direction investors cheer an upbeat political development. President Donald Trump said he would leave the White House if the Electoral College votes in favor of President-elect Joe Biden. The safe-haven dollar is under pressure amid greater political certainty.”

“Pound/dollar is dipping below the bullish ascending triangle. The breakdown is yet to be confirmed, but upside momentum on the 4-hour charge is already fading. 

“Support awaits at 1.3310, which was a double-top and now converges with the 50 Simple Moving Average. It is followed by 1.3265 and 1.3245, which worked as cushions earlier in November. Resistance is at the recent high of 1.3397, and then by September's peak of 1.3495.”