GBP/USD early price indications, heavily bid on Brexit sentiment

Early price indications see GBP/USD bulls coming back to the table following weekend news of further Brexit talks.
US dollar under pressure within downside structure capped in a 50% mean reversion.

Ross J Burland FXStreet

According to early price indications, GBP/USD is set to open in the 1.3350 area following a close on Friday at 1.3217 and within the 1.3134 and 1.3324 range.

It is all about Brexit with some US dollar vulnerability thrown in.

The US dollar has not been able to fend off the bears in its pursuit of a correction in the DXY. Instead, the DXY was capped at a 50% mean reversion and is trading back below the 10-day moving average.

The news of the vaccine distribution could be the next catalyst to send the dollar to lower lows if the US stock market finds traction again and risk sentiment picks up.

Meanwhile, Brexit headlines have dominated the weekend news.

We are still no closer to a deal or deadline.

European Commission President Ursula von der Leyen has announced that Brexit negotiations will carry on beyond today’s deadline, adding that it was "responsible at this point in time to go the extra mile," after talks with UK Prime Minister Boris Johnson.

The UK Coordination Group will have an exchange of views with EU chief negotiator Barnier at 9.30am Brussels time.

GBP/USD levels

As illustrated, the 1.3350 level was already earmarked as a level, a final barrier within a resistance structure consisting of plenty of sellers.

GBP/USD

Overview
Today last price	1.3227
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	1.3227

Trends
Daily SMA20	1.3334
Daily SMA50	1.3151
Daily SMA100	1.3092
Daily SMA200	1.2752

Levels
Previous Daily High	1.3325
Previous Daily Low	1.3134
Previous Weekly High	1.3478
Previous Weekly Low	1.3134
Previous Monthly High	1.3398
Previous Monthly Low	1.2854
Daily Fibonacci 38.2%	1.3207
Daily Fibonacci 61.8%	1.3252
Daily Pivot Point S1	1.3133
Daily Pivot Point S2	1.3039
Daily Pivot Point S3	1.2943
Daily Pivot Point R1	1.3323
Daily Pivot Point R2	1.3419
Daily Pivot Point R3	1.3513

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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