GBP/USD drops below 1.3320 on renewed no-deal fears

GBP/USD fell sharply on latest headlines surrounding UK-EU trade talks.
UK PM Johnson says substantial and important differences remain.
US Dollar Index stays in the red below 92.00.

Eren Sengezer FXStreet

The GBP/USD pair came under renewed bearish pressure and dropped to a daily low of 1.3317 following the latest headlines surrounding the EU-UK trade negotiations. As of writing, the pair was down 0.26% on the day at 1.3320.

No-deal fears weigh on GBP

Citing an EU diplomat, Reuters reported on Friday that EU ambassadors called upon the European Commission to present contingency measures for a no-deal urgently. Additionally, British Prime Minister Boris Johnson noted that substantial and important differences remain to be gapped in negotiations and said that the UK can prosper with or without a deal.

These comments caused GBP/USD to lose nearly 40 pips in a matter of minutes. Furthermore, the UK's FTSE 100 Index lost traction to reflect the cautious market mood and was last seen losing 0.5% at 6,331.

On the other hand, the US Dollar Index is staying relatively quiet on Friday, allowing GBP/USD to limit its losses for the time being. There won't be any macroeconomic data releases from the US in the remainder of the day and the US stocks markets will close early due to the Thanksgiving Day holiday. At the moment, the DXY is posting small daily losses at 91.97.

Technical levels to watch for

GBP/USD

Overview
Today last price	1.3337
Today Daily Change	-0.0019
Today Daily Change %	-0.14
Today daily open	1.3356

Trends
Daily SMA20	1.3191
Daily SMA50	1.3034
Daily SMA100	1.3014
Daily SMA200	1.2727

Levels
Previous Daily High	1.3398
Previous Daily Low	1.3322
Previous Weekly High	1.3312
Previous Weekly Low	1.3166
Previous Monthly High	1.3177
Previous Monthly Low	1.282
Daily Fibonacci 38.2%	1.3351
Daily Fibonacci 61.8%	1.3369
Daily Pivot Point S1	1.332
Daily Pivot Point S2	1.3283
Daily Pivot Point S3	1.3244
Daily Pivot Point R1	1.3396
Daily Pivot Point R2	1.3434
Daily Pivot Point R3	1.3471

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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