- Cable retreats from earlier tops in the 1.3260 area.
- Uncertainty over a backstop agreement weighs on the Sterling.
- Brexit remains the exclusive catalyst for Cable’s price action.
After climbing as high as the 1.3260 region during early trade, GBP/USD has now receded some ground and tested the 1.3200 neighbourhood.
GBP/USD keeps looking to Brexit for direction
Cable met some decent resistance in the 1.3260 zone today – or multi-day peaks - and this provoked a moderate knee-jerk to the vicinity of the 1.3200 handle.
Renewed uncertainty around the backstop agreement remerged and keeps weighing on the British Pound today after UK Cabinet failed to come out with a solution over the EU’s view of an open-ended period to remain in place vs. the UK’s idea to put a time limit on leaving the customs union.
Nothing scheduled data with in the UK docket, whereas Export/Import Price index and the advanced measure of US Consumer Sentiment are due later in the NA session.
GBP/USD levels to consider
As of writing, the pair is losing 0.11% at 1.3219 facing the next support at 1.3116 (21-day SMA) seconded by 1.3099 (10-day SMA) and finally 1.2921 (low Oct.4). On the upside, a breakout of 1.3258 (high Oct.12) would aim for 1.3299 (high Sep.20) and then 1.3364 (high Jul.9).
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