GBP/USD drops sharply to 1.3080 as no-deal Brexit fears return

Increased odds of no-deal Brexit, USD rebound knocks-off GBP/USD.
All eyes remain on Brexit headlines, US macro data and EU Summit.

Dhwani Mehta FXStreet

The GBP/USD pair stalled its steady recovery mode near 1.3160 and ran into heavy offers after the greenback staged a solid rebound across the board, mainly driven by an 80-pips sell-off in the EUR/USD pair following awful Eurozone and German manufacturing March PMI reports.

Goldman Sachs raises chances of no-deal Brexit, says all options in play

The latest slide in the spot can be also attributed to the return of the GBP bears, as markets are now pricing in the chances of a no-deal Brexit again, as they believe the 2-weeks Brexit deadline extension granted by the European Union (EU) to the UK PM May is unlikely to resolve any problem for May’s government.

Meanwhile, no new surprises offered by the Bank of England (BOE) a day before also continues to weigh down on the investors’ minds, as attention gradually shifting towards a fresh batch of macro releases from the US docket due later today. Markets look forward to the manufacturing and services PMI reports from Markit and existing homes sales data for fresh trading incentives while the Brexit-related anxiety will continue to play out ahead of the EU Summit next week.

GBP/USD Technical Levels

GBP/USD

Overview
Today last price	1.3088
Today Daily Change	-0.0019
Today Daily Change %	-0.14
Today daily open	1.3107

Trends
Daily SMA20	1.3186
Daily SMA50	1.306
Daily SMA100	1.2914
Daily SMA200	1.298

Levels
Previous Daily High	1.3228
Previous Daily Low	1.3003
Previous Weekly High	1.3384
Previous Weekly Low	1.296
Previous Monthly High	1.3351
Previous Monthly Low	1.2773
Daily Fibonacci 38.2%	1.3089
Daily Fibonacci 61.8%	1.3142
Daily Pivot Point S1	1.2997
Daily Pivot Point S2	1.2887
Daily Pivot Point S3	1.2772
Daily Pivot Point R1	1.3223
Daily Pivot Point R2	1.3338
Daily Pivot Point R3	1.3448

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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