GBP/USD determined to hold 1.3000 as Brexit roils markets

The GBP/USD has found itself chained to the 1.3000 major handle as Brexit headlines continue to drag the Sterling up and down the charts.

A tentative Brexit deal appears to be in the works, but plenty of legwork remains in the chute, with ratification required within all European constituencies, and the real challenge will come when UK Prime Minister Theresa May has to table and pass the Brexit deal, which remains largely under wraps, before the UK parliament, a true challenge for the PM's closely-guarded Brexit proposals. An on-again, off-again, then on-again press conference yesterday helped to keep the Pound in the lurch, and rumours are beginning to spread of a potential play by hardline Brexiteers to call a no-confidence vote in PM May this week, and derail Brexit negotiations once and for all.

Thursday's UK data docket is relatively sparse compared to recent days, with UK Retail Sales due at 09:30 GMT, and the headline annualized figure is expected to hold steady at the previous reading of 3%, while later on in the US market window at 13:30 GMT will see US Retail Sales, a more significant reading which sees median market forecasts calling for October's month-over-month Retail Sales to jump from 0.1% to 0.5%.

GBP/USD levels to watch

Well-tumbled Cable markets are struggling to find a technical stance to lean into, and according to FXStreet's own Valeria Bednarik, indicators are providing little assistance as the market spreads in both directions at once: "the 4 hours chart show that is back above a bearish 20 SMA and now trying to surpass the 200 EMA, while technical indicators diverge from each other, the Momentum heading lower and the RSI modestly higher. Volatility around the GBP/USD is directly correlated to Brexit headlines, overshadowing technical readings, and therefore making it to risky to trade at the current levels. Either below 1.2826 or above 1.3046, the pair could seem some directional strength, depending on how the Brexit deal develops."

Support levels: 1.2860 1.2825 1.2770

Resistance levels: 1.2955 1.3000 1.3045

the 4 hours chart show that is back above a bearish 20 SMA and now trying to surpass the 200 EMA, while technical indicators diverge from each other, the Momentum heading lower and the RSI modestly higher. Volatility around the GBP/USD is directly correlated to Brexit headlines, overshadowing technical readings, and therefore making it to risky to trade at the current levels. Either below 1.2826 or above 1.3046, the pair could seem some directional strength, depending on how the Brexit deal develops.

Support levels: 1.2860 1.2825 1.2770

Resistance levels: 1.2955 1.3000 1.3045