GBP/USD losses momentum and slides back under 1.3000

Pound erases gains, retreats finding support at 1.2965.
Cable remains sideways amid Brexit comments, close to weekly lows.

Matías Salord FXStreet

The GBP/USD pulled back after the beginning of the US session and erase most of the day’s gains. If dropped below 1.3000 and fell to 1.2965. As of writing was trading at 1.2985, up 15 pips for the day.

Earlier today, the pound strengthened but the momentum did not last after a report suggested that the European Union was willing to offer UK PM Theresa May a wide customs arrangement. Cable peaked to 1.3042, but then retreat. The latest comments regarding Brexit came recently from May’s spokesman, mentioning it was unacceptable to keep Northern Ireland in a separate customs treaty. Previously the spokesman reiterated that EU's backstop proposal was unacceptable.

Brexit headlines are likely to dominate sentiment around the pound. BoE Governor Mark Carney is scheduled to deliver a speech that could hit the wires any moment.

GBP/USD - Levels to watch

To the downside, the immediate support is seen at US session lows at 1.2965/70 followed by 1.2955 (Oct 22 low) and then 1.2935 (Oct 23 low). On the upside, resistance could be located at 1.3010 (Oct 19 low), 1.3045 (Oct 23 high) and 1.3075.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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