GBP/USD capped at 1.2937, pulls back to test 1.2900 area
The sterling is looking heavy on Thursday as previous hopes of a Brexit deal with the EU deteriorate. The GBP/USD has depreciated approximately 1% on the day and is testing 1.2900 at the moment of writing.
The pound has relinquished Wednesday’s gains against the US dollar as the investors reassess the chances of significant achievements in the Brexit negotiations. With the obstacles between the UK and the EU becoming more evident, namely the differences about fisheries and fair competition and dispute resolution issues, the market starts to anticipate a watered-down-agreement, in case there is any.
GBP/USD Price Analysis: Monthly support line probe bears near 1.2900
GBP/USD remains on the back foot despite taking rounds to 1.2900 during the early Asian session on Friday. The cable dropped heavily the previous day but couldn’t conquer an ascending trend line from September 30.
With the MACD flashing bearish signals sellers are waiting for entries below the 1.2890 immediate support line figure. While the current week’s bottom surrounding 1.2860 can initially probe the bears, any further downside might not hesitate to challenge September 30 low near 1.2805.
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