GBP/USD Analysis: Pressure mounts as EU27 decides what’s next on Brexit
|GBP/USD Current Price: 1.2919
- EU27 set to discuss Brexit extension, sooner possible answer next Friday.
- Rumors about a UK election arose after PM’s Johnson defeat in Parliament.
- GBP/USD short-term bearish with scope to lose the 1.2800 level.
The GBP/USD pair is trading around 1.2920 by the end of the American session, up daily basis, although having extended its weekly decline to 1.2841. The pair spent the day below the 1.2900 figure, as the Pound fell out of the market’s favor after the Parliament put a lid to PM Johnson’s plan to get his Brexit deal approved before October 31st. The ball rolled the EU’s side of the court, as European leaders should now decide on a delay to the UK’s departure from the Union. Market talks suggest that the EU27 is willing to grant a three-month extension, although a formal announcement is not expected before Friday. In the meantime, odds for a new election increased. News agencies reported a “source” from Downing Street stated that “if parliament’s delay is agreed by Brussels, then the only way the country can move on is with an election.”
The UK macroeconomic calendar had nothing relevant to offer this Wednesday and will remain light during the next 24 hours, as the kingdom will only release September BBA Mortgage Approvals.
GBP/USD short-term technical outlook
The GBP/USD pair is at the upper end of its daily range, but the risk remains skewed to the downside according to intraday technical readings. In the 4 hours chart, the pair is confined to a tight range below a flat 20 SMA, although still far above the larger ones, which maintain their bullish slopes. Technical indicators in the same chart are recovering the Momentum within negative levels, and the RSI entering positive ground. Overall, the pair has little chances of recovering ground as long as it remains below 1.2950, the immediate resistance.
Support levels: 1.2870 1.2830 1.2785
Resistance levels: 1.2950 1.2990 1.3030
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.