GBP/USD under pressure ahead of Super Saturday


  • GBP/USD is reporting losses at press time, having hit a five-month high on Thursday. 
  • Britain's parliament will vote on the new Brexit deal on Saturday. 
  • Prime Minister Johnson lacks the support of the Northern Irish Ally.

GBP/USD is flashing red at press time, possibly due to fears that Prime Minister Boris Johnson may fail to pass the new Brexit agreement in the UK parliament on Saturday.

The currency pair is currently trading near 1.2850, representing a 0.30% loss on the day, having hit a high of 1.2990 on Thursday. That was the highest level since May 13.

The Pound picked up a strong bid in the European session on Thursday on reports the UK and European Union (EU) have reached a Brexit withdrawal agreement.

The rise to five-month highs, however, was short-lived, as initial optimism faded on the realization that the deal could be rejected by the UK parliament.

Super Saturday

In an extraordinary Saturday sitting, the first since 1982, the parliament will vote on approving the new Brexit deal.

Getting the deal approved is going to be an uphill task for Prime Minister Johnson, as the Democratic Unionist Party – government's Northern Irish ally – has rejected the deal.

Further, Johnson's Conservatives have no majority in the 650-seat House of Commons and will face a deeply divided parliament where his opponents are trying to force both a delay to Brexit and another referendum, as per Reuters report.

Traders, therefore, may unwind GBP long positions ahead of Super Saturday, keeping the GBP/USD pair under pressure.

As per technical charts, the immediate bullish case would weaken below the 50-hour moving average support at 1.2821. This is because the key average consistently reversed pullbacks throughout the recent rally from 1.22 to 1.2990.

Technical levels

GBP/USD

Overview
Today last price 1.2852
Today Daily Change -0.0038
Today Daily Change % -0.29
Today daily open 1.289
 
Trends
Daily SMA20 1.2442
Daily SMA50 1.2322
Daily SMA100 1.2418
Daily SMA200 1.2715
 
Levels
Previous Daily High 1.299
Previous Daily Low 1.2749
Previous Weekly High 1.2707
Previous Weekly Low 1.2194
Previous Monthly High 1.2583
Previous Monthly Low 1.1958
Daily Fibonacci 38.2% 1.2898
Daily Fibonacci 61.8% 1.2841
Daily Pivot Point S1 1.2763
Daily Pivot Point S2 1.2635
Daily Pivot Point S3 1.2521
Daily Pivot Point R1 1.3004
Daily Pivot Point R2 1.3118
Daily Pivot Point R3 1.3245

 

 

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