- Brexit continues to vex GBP bulls, and headlines have driven the GBP/USD steadily lower for the week.
- With a thin calendar on the docket for Friday, traders have to face broader markets sentiment alone.
The GBP/USD continues to mark in new lows ahead of Friday’s London market session, and the pair continues to drop, hitting 1.3164 as Brexit concerns continue to drag the pair down.
Prime Minister Theresa May’s government released the White Paper outlining the PM’s latest Brexit proposal, which has seen resignations from key Brexit ministers in protest over the proposals, which see May desperately hoping to avert a hard Brexit. EU leaders have yet to pass judgement on the latest proposals, but the hard-line negotiation tactics being employed by the EU see little wiggle room for Theresa May, who continues to struggle with wrangling vehement Brexiteers in her parliament.
Friday is a sparse showing for both the Sterling and the Greenback on the economic calendar, and market focus will remain on Brexit headlines, with some extra focus on US President Donald Trump, who is in the UK for a multi-day visit, and stated to UK media outlets his dissatisfaction with PM May for not taking his advice on Brexit, and also noted that a soft-Brexit scenario may “kill” chances of UK-US trade negotiations in the future, applying further pressure on Prime Minister May.
GBP/USD Technical Analysis
Brexit concerns are the headline driver for the Sterling through the week, and the GBP/USD is sinking into fresh lows, though intraday support is being found at the 61.8% Fibonacci retracement level, and bulls have a very small window to push into a reversal of the week’s overall action.
|Support 1:||1.3168 (61.8% Fibo retracement level)|
|Support 2:||1.3094 (previous week low)|
|Support 3:||1.3049 (2018 low)|
|Resistance 1:||1.3244 (previous day high)|
|Resistance 2:||1.3277 (R2 daily pivot)|
|Resistance 3:||1.3361 (current week high)|
GBP/USD Chart, 15-Minute