- The Sterling to face further losses as the GBP/USD accelerates to the downside.
- Brexit headlines continue to drive the Cable, and news on the EU-UK split are leaning heavily towards the disappointing side.
The GBP/USD is trading into 1.2800 heading into Friday's London market session after accelerating declines out of a bearish channel yesterday following comments from UK Brexit Secretary Domonic Raab who blamed the European Union for the lack of a Brexit deal.
The UK's Raab blamed the EU's "intransigence" on Brexit negotiations for the lack of a deal as talk deadlines rapidly approach, and the lack of any workable deals between the UK and the EU is leaving Pound traders in the lurch, forcing the GBP lower across the board as fears of a no-deal hard Brexit continue to rise, with November's deadline to have a deal in place ahead of March's final Brexit date fast approaching and the two sides seeming to move further apart after months of endless talking-up by representatives on both sides.
The economic calendar leaves the GBP completely unrepresented, and the Cable will be seeing market sentiment holding the reigns to end the week's trading, though US Preliminary GDP figures due at 12:30 GMT today will no doubt see plenty of Greenback-based action, with 2018's third-quarter GDP expected to print at 3.3%, a slight contraction from the previous quarter's 4.1%.
GBPUSD levels to watch
The Cable is set firmly into a bearish downtrend and shows no signs of slowing, and according to FXStreet's Valeria Bednarik: "from a technical point of view, the slump accelerated after the pair broke below the 61.8% retracement of the 2016/18 rally at around 1.2880, and has room to extend its decline, particularly on a break below 1.2785, September monthly low. In the 4 hours chart, the 20 SMA heads south almost vertically far above the current level, while technical indicators are currently losing downward strength but in extremely oversold levels, with no signs of changing course. Some consolidation could be expected, but the bearish potential will be strong as long as the price remains below the mentioned 1.2880 price zone."
Support levels: 1.2810 1.2785 1.2740
Resistance levels:1.2850 1.2880 1.2925
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD bounces back, trades above 1.0860
EUR/USD bounced from a fresh weekly low of 1.0827, as the US Dollar lost steam following a weak ISM Manufacturing PMI report and words from Federal Reserve Chair Jerome Powell. Powell reiterated its hawkish message, dismissing potential rate cuts in the near future.
GBP/USD turns north ahead of the weekly close, approaches 1.2700
GBP/USD extended its rebound from near 1.2600 and is approaching 1.2700 on the back of a weaker US Dollar. The Greenback accelerated to the downside following comments from Fed’s Powell.
Gold resumes advance and approaches record highs
Gold remains near record highs and achieved its highest monthly close ever in November. Global bond yields continue to decline as inflation further cools, supporting the upside in XAU/USD. With central banks expected to remain on hold, the focus will be US labor market data.
Solana likely to extend gains as DeFi airdrop season could boost user base
Solana ecosystem will see airdrops from projects like Jupiter, Marginfi, Drift, Zeta and Jito. Solana users are projected to increase between 30% and 80% from native token launches, according to Messari’s latest report. SOL price extends rally, yielding nearly 4% daily gains.
Tesla Stock News: Cybertruck excitement fails to sustain TSLA price as chart signals more downside
TSLA stock sinks three days in a row despite Cybertruck unveiling. Analysts conclude that Cybertruck will find it difficult to turn a profit. TSLA stock is the midst of forming a bearish Three Black Crows pattern on the daily chart.