GBP/USD continues to suffer at the hands of Brexit-minded bears

The Sterling is on pace to mark in a bearish week as Brexit concerns continue to weigh.
A thin schedule for Friday will see traders face-to-face with Brexit bears, and USD flows could set the tone.

Joshua Gibson FXStreet

The GBP/USD continues to flub into lower price levels, and is currently testing near 1.3180 after dipping into a new low of 1.3167 in the early overnight session.

Brexit headlines continue to represent a significant drag on the Sterling, which has seen the week go to the bears as the GBP/USD shifts to the low side. Several key Brexit ministers resigned from their posts early in the week in protest of Prime Minister Theresa May's latest "third option" Brexit proposal, and the latest White Paper released on Thursday did little to ease hard-line Brexiteer concerns, drawing criticism within the parliament as a bad deal for Britain.

The US President, Donald Trump, who is in the UK for a multi-day visit, lamented the latest Brexit proposal, warning that a soft Brexit scenario that sees the UK tied to the EU on trade policies will hamper efforts to enact trade deals between the US and the UK moving forward.

Friday is a thin showing on the economic calendar for both the GBP and the USD, with Friday's London session seeing a mid-tier speech from the Bank of England's (BoE) MPC Member Cunliffe at 11:00 GMT, with the US Fed's Monetary Policy Report at 15:00 GMT and another speech from the Fed's FOMC Member Bostic at 16:30 GMT.

GBP/USD levels to watch

Further downside for the Pound as Brexit jitters continue to wear down traders is heavily priced in for the last trading day of the week, and according to FXStreet's own Valeria Bednarik, "technically, the risk is leaned to the downside according to the 4 hours chart, as the pair met selling interest around a bearish 20 SMA a couple of times, currently at 1.3240, while technical indicators remain in negative territory, with the Momentum aiming modestly higher but the RSI losing upward strength and heading marginally lower at 45."

Support levels: 1.3180 1.3155 1.3110

Resistance levels: 1.3240 1.3285 1.3320

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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