GBP/USD consolidates below 1.29 and key resistance structure

  • GBP/USD holding offer the bears but struggles below key resistance.
  • Brexit keeps the bulls at bay and US stimulus hopes pressure the greenback.

GBP/USD is currently trading at 1.2885 and between a range of 1.2819 and 1.2978 on the day.

Brexit remains in focus and GBP has weakened on suggestions the latest round in negotiations has hit a snag. 

The EU has begun legal proceedings against the UK after the Kingdom's PM, Boris Johnson, outlined plans to breach the terms of its Brexit divorce deal with the EU and therefore break international law. 

''We had anticipated a souring of the week’s earlier tone and think GBP should continue to lag its peers near-term. Further out, however, we think sterling has a lot of bad news in the price and wonder if downside risks for cable of a No Deal outcome are starting to diminish,'' analysts at TD Securities explained.

The UK has one month to respond to the legal challenge while the negotiations continue.

''The decision by the UK to ignore international law sets a dangerous precedent, adding uncertainty to not only Brexit but also global stability. It undermines the power of the WTO,'' analysts at ANZ bank explained. 

However, both sides say a deal is in sight despite that they are struggling to reach an agreement on some key issues.

One of the major issues is around the UK's ability to use state aid in order to prop up British businesses. The EU says this could give British companies an unfair advantage over EU companies. Disputes over fishing rights and governance are also preventing headway.

Meanwhile, the US dollar was pressured to a low in the 93.50s as measured by the DXY index as investors juggled hopeful and pessimistic news on the progress of stimulus talks Washington amid signs of waning momentum of economic recovery from the pandemic recession, now entering its ninth month. 

GBP/USD levels

If there is a continuation of accumulation at support, then the case will remain bullish.

However, a break of the structure opens downside risks.  

The US dollar, on the other hand, could be on the verge of a comeback:


Today last price 1.2888
Today Daily Change -0.0033
Today Daily Change % -0.26
Today daily open 1.2921
Daily SMA20 1.2915
Daily SMA50 1.3028
Daily SMA100 1.2751
Daily SMA200 1.2719
Previous Daily High 1.2943
Previous Daily Low 1.2806
Previous Weekly High 1.2967
Previous Weekly Low 1.2676
Previous Monthly High 1.3482
Previous Monthly Low 1.2676
Daily Fibonacci 38.2% 1.289
Daily Fibonacci 61.8% 1.2858
Daily Pivot Point S1 1.2837
Daily Pivot Point S2 1.2753
Daily Pivot Point S3 1.27
Daily Pivot Point R1 1.2974
Daily Pivot Point R2 1.3027
Daily Pivot Point R3 1.3112



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD edges above 1.18 amid mixed US data, slim stimulus hopes

EUR/USD is trading above 1.30 after US Durable Goods Orders beat expectations but Consumer Confidence missed estimates. Hopes for a US stimulus deal are slim with a week left until the elections.


GBP/USD stabilizes above 1.30 amid Brexit and covid uncertainty

GBP/USD is hovering above the round 1.30 levels as rising UK COVID-19 cases, uncertainty about Brexit, and PM Johnson's political problems weigh on sterling. US data has been mixed.


XAU/USD pares early gains, turns flat near $1,900

For the third straight trading day on Tuesday, the XAU/USD pair is moving sideways above $1,900 as participants wait for the next significant catalyst. After climbing to a daily high of $1,910 earlier in the day, the pair lost its traction and was last seen trading virtually unchanged on the day at $1,902.

Gold News

Bitcoin breaks new yearly highs; the road to $15,000 is clear

Bitcoin breaks new yearly highs and hits $13,464. The road to $15,000 is clear as there are no major resistance levels above the current price.

Read more

WTI trims losses and moves near $39.00/bbl ahead of API

Following two consecutive daily pullbacks, prices of the West Texas Intermediate regain some buying interest and reach the $39.00 mark per barrel on turnaround Tuesday.

Oil News