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  • Early price indications see GBP/USD bulls coming back to the table following weekend news of further Brexit talks. 
  • US dollar under pressure within downside stricture capped in a 50% mean reversion. 

According to early price indications, GBP/USD is set to open in the 1.3350 area following a close on Friday at 1.3217 and within the 1.3134 and 1.3324 range. 

It is all about Brexit with some US dollar vulnerability thrown in. 

The US dollar has not been able to fend off the bears in its pursuit of a correction in the DXY.  Instead, the DXY was capped at a 50% mean reversion and is trading back below the 10-day moving average. 

The news of the vaccine distribution could be the next catalyst to send the dollar to lower lows if the US stock market finds traction again and risk sentiment picks up. 

Meanwhile, Brexit headlines have dominated the weekend news. 

We are still no closer to a deal or deadline.

European Commission President Ursula von der Leyen has announced that Brexit negotiations will carry on beyond today’s deadline, adding that it was “responsible at this point in time to go the extra mile,” after talks with UK Prime Minister Boris Johnson.

The UK Coordination Group will have an exchange of views with EU chief negotiator Barnier at 9.30am Brussels time.

GBP/USD levels

As illustrated, the 1.3350 level was already earmarked as a level, a final barrier within a resistance structure consisting of plenty of sellers.