GBP/USD treading water below 1.3400

  • Cable looks to rebound from lows near 1.3360.
  • Brexit concerns keep weighing on sentiment.
  • PM T.May faces increasing political pressure.

The Sterling remains vulnerable in the second half of the week, with GBP/USD now attempting to consolidate below the 1.3400 handle.

GBP/USD focus on Brexit talks

Cable is shedding ground since Tuesday and continues to trade close to multi-day lows around 1.3360 seen on Wednesday.

Increasing instability around the UK political scenario, renewed Brexit jitters and the bid bias surrounding the greenback are all collaborating with the pair’s 2-cent decline from last week’s tops in the mid-1.3500s.

GBP remains fragile ahead of the critical EU Summit expected next week, where the current Brexit negotiations will be on top of the agenda. Adding to the ongoing concerns, the ‘Irish border’ issue still remains unsolved, while a key meeting between PM T.May and the DUP party should be any time soon.

GBP/USD levels to consider

As of writing, the pair is losing 0.12% at 1.3376 and a break below 1.3358 (low Dec.6) would aim for 1.3305 (21-day sma) and then 1.3221 (low Nov.28). On the other hand, the immediate up barrier aligns at 1.3409 (10-day sma) seconded by 1.3478 (high Dec.5) and finally 1.3550 (high Dec.1).

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