- 50-DMA is the level to beat for the GBP/USD bulls.
- The cable teasing a symmetrical triangle breakdown on the daily chart.
- UK PM Johnson to decide Brexit fate on Friday
GBP/USD wallows in lows below 1.2900 in European trading this Friday, extending Thursday’s sell-off after the European Union (EU) gave an ultimatum to the UK PM Boris Johnson to agree on concessions and reach a trade deal or get ready for a no-deal Brexit.
The risk appears to the downside for the cable, as PM Johnson will decide on the Brexit fate, setting out his approach later on Friday.
From a near-term technical perspective, the spot is on the verge of a symmetrical triangle breakdown on the daily chart following a rejection at the horizontal 50-daily moving average (DMA) resistance, now at 1.3016 a day before.
The 14-day Relative Strength Index (RSI) has pierced below the midline, suggesting that the additional downside remains on the cards.
A daily close below the powerful support at 1.2885, the confluence of the rising trendline support and 21-DMA, would confirm the triangle breakdown.
Subsequently, the bullish 100-DMA support at 1.2836 could be challenged.
Meanwhile, recapturing the 50-DMA barrier is critical to negate the bearish momentum.
GBP/USD: Daily chart
GBP/USD: Additional levels
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