GBP/USD analysis: Brexit headlines keep coming, but there's no deal yet
|GBP/USD Current price: 1.2968
- Mounting speculation of a new UK Brexit´s plan to be discussed this week.
- GBP/USD exposed to wild swings amid Brexit uncertainty.
The GBP/USD pair closed the week with gains in the 1.2960 region, recovering from a multi-month low of 1.2690. By the end of the week, however, the pair was unable to sustain gains above the 1.3000 level as the unimpressive US NFP report gave speculative interest a reason to book some profits ahead of the weekly close. Brexit headlines over the weekend have been quite intense and may lead to some gaps in the pair ahead of the weekly opening. There was a report indicating that UK PM May had a plan to remain in a temporary customs union with the EU to avoid a hard border in Ireland. Later, a May's spokesman said that an all-UK customs Brexit deal report is "speculation," denying the previous news. PM May's cabinet is said to meet on Tuesday, to discuss a plan to present the EU before the weekend. Also, The Guardian reported Sunday that more than 50 business leaders have signed a letter advocating a second vote on Brexit.
The UK will release this Monday the October Markit Services PMI expected at 53.3 from 53.9 in September.
Technically, the upward potential for the pair remains limited, as, in the daily chart, the rally stalled around a mild-bearish 20 DMA which continues gaining downward traction below the 200 EMA. In the same chart, technical indicators have recovered from oversold readings, but the advance lost strength within negative ground, with the indicators now turning lower. Shorter term, and according to the 4 hours chart, however, the scale leans to the upside, as the pair is battling around a flat 200 EMA and well above a bullish 20 SMA, while technical indicators stabilized well into positive ground after correcting extreme overbought readings.
Support levels: 1.2935 1.2900 1.2865
Resistance levels: 1.30001.3040 1.3085
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.