GBP/USD struggling underneath 1.2900 as Brexit headlines continue to disappoint

It's all about Brexit ahead of a data-thin Thursday.
EU-UK negotiations have suddenly returned to reaching across a chasm following months of soothe-speaking from political figureheads, and confidence is evaporating rapidly.

Joshua Gibson FXStreet

The GBP/USD is trading just shy of the 1.2900 technical level ahead of Thursday's London market session as Brexit fears continue to drain confidence from the Pound.

Thursday is completely clear of UK data on the economic calendar, and traders will have no choice but to continue focusing on Brexit headlines, which have taken a turn for the bearish recently.

The European Union's latest counter-proposal to the UK's Prime Minister Theresa May fell far short of expectations, with EU leaders in Brussels pushing for an agreement on the Irish border dispute to be held separate from Brexit proceedings, while PM May is determined to have an Irish border workaround built into the main Brexit divorce bill, and as the clock winds down with both sides remaining at loggerheads, the UK's population and firms are beginning to batten down the hatches for a hard-style, no-deal Brexit, and concerns are on the rise that the UK will have difficulties getting essential supplies and resources into Britain's borders following a messy European exit.

GBP/USD levels to watch

The Sterling is primed for further declines on the technical side according to FXStreet's Chief Analyst Valeria Bednarik: "intraday technical readings support further slides ahead, as, in the 4 hours chart, the pair has extended its decline below its 200 EMA and 20 SMA, while technical indicators maintain their strong downward slopes within negative levels ad at fresh October lows. The pair has its next relevant support at 1.2785, September monthly low, a probable bearish target in the case the decline continues sub-1.2855, September 3 low. In the unlikely case of an agreement about the Irish border issue, the pair could reverse course and reclaim the 1.3000 level."

Support levels: 1.2855 1.2810 1.2785

Resistance levels: 1.2925 1.2960 1.3000

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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