GBP/USD Price Analysis: Teasing a triangle breakdown, eyes on PM Johnson’s Brexit decision

50-DMA is the level to beat for the GBP/USD bulls.
The cable teasing a symmetrical triangle breakdown on the daily chart.
UK PM Johnson to decide Brexit fate on Friday

Dhwani Mehta FXStreet

GBP/USD wallows in lows below 1.2900 in European trading this Friday, extending Thursday’s sell-off after the European Union (EU) gave an ultimatum to the UK PM Boris Johnson to agree on concessions and reach a trade deal or get ready for a no-deal Brexit.

The risk appears to the downside for the cable, as PM Johnson will decide on the Brexit fate, setting out his approach later on Friday.

From a near-term technical perspective, the spot is on the verge of a symmetrical triangle breakdown on the daily chart following a rejection at the horizontal 50-daily moving average (DMA) resistance, now at 1.3016 a day before.

The 14-day Relative Strength Index (RSI) has pierced below the midline, suggesting that the additional downside remains on the cards.

A daily close below the powerful support at 1.2885, the confluence of the rising trendline support and 21-DMA, would confirm the triangle breakdown.

Subsequently, the bullish 100-DMA support at 1.2836 could be challenged.

Meanwhile, recapturing the 50-DMA barrier is critical to negate the bearish momentum.

GBP/USD: Daily chart

GBP/USD: Additional levels

GBP/USD

Overview
Today last price	1.2886
Today Daily Change	-0.0027
Today Daily Change %	-0.21
Today daily open	1.2913

Trends
Daily SMA20	1.2891
Daily SMA50	1.302
Daily SMA100	1.2831
Daily SMA200	1.271

Levels
Previous Daily High	1.303
Previous Daily Low	1.289
Previous Weekly High	1.305
Previous Weekly Low	1.2845
Previous Monthly High	1.3482
Previous Monthly Low	1.2676
Daily Fibonacci 38.2%	1.2944
Daily Fibonacci 61.8%	1.2977
Daily Pivot Point S1	1.2859
Daily Pivot Point S2	1.2805
Daily Pivot Point S3	1.272
Daily Pivot Point R1	1.2999
Daily Pivot Point R2	1.3084
Daily Pivot Point R3	1.3138

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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