GBP/USD recovery halted ahead of 1.2800

Cable’s upside momentum failed near the 1.2800 handle.
Attention remains on the debate in the House of Commons.
Brexit legal advice notes backstop could endure ‘indifinitely’.

Pablo Piovano FXStreet

The upside momentum around GBP/USD failed just ahead of the critical barrier at 1.2800 the figure on Wednesday.

GBP/USD focused on Brexit developments

Following fresh 2018 low at 1.2660 on Tuesday, Cable managed to stage quite a strong rebound that run out of steam at today’s tops in levels just shy of the key 1.2800 milestone.

Nothing new around the Sterling, with all the attention on the debate of May’s Brexit plan in the House of Commons, while the crucial vote expected on December 11.

Earlier in the session, the UK government released the full legal advice on Brexit, stating that the backstop could endure ‘indefinitely’, that a deal can’t force the EU to end the Irish backstop and that the country faces legal risks if it becomes stuck in repeating rounds of negotiations.

In the data space, UK’s key Services PMI came in at 50.4 for the month of November, below previous estimates.

GBP/USD levels to consider

As of writing, the pair is up 0.47% at 1.2777 facing the next hurdle at 1.2798 (high Dec.5) seconded by 1.2851 (21-day SMA) and then 1.2928 (high Nov.22). On the other hand, a breach of 1.2660 (2018 low Dec.4) would open the door to 1.2591 (monthly low Jun.21 2017) and finally 1.2363 (monthly low Jul.4 2017).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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