GBP/USD Technical Analysis: As technicals break down, Brexit remains the primary driver

• The Sterling-Dollar pairing is seeing limited upside action, buoyed from near-term lows just below the 1.2800 major technical figure, but still in play within Monday’s early range after a thin bullish gap that failed to push the pair out of last Friday’s late-market consolidation range.

GBP/USD Chart, 5-Minute

• Looking back over the past two weeks, the rise and fall of Brexit hopes throughout the broader market have had a profound effect on the Cable, leaving the major pairing in a lurching volatility trap where extreme swing points are predicated on broad-base buying or selling based on the flow of headlines surrounding the ongoing Brexit process, which shows little signs of letting up.

GBP/USD Chart, 30-Minute

• Moving above the noise, the past two months sees  the GBP/USD trapped in a tightening spiral, with lower highs and higher lows constraining the Cable as sideways volatility erases any medium-term trends.

GBP/USD Chart, 4-Hour