GBP/USD Current price: 1.2735

  • No second Brexit referendum likely despite Corbyn's desire.
  • BOE's Governor Carney set to speak this Wednesday after the release of the Financial Stability Report.

The GBP/USD pair traded as low as 1.2724, not far from November bottom at 1.2723, as Brexit disappointment keeps weighing on the Pound. Jeremy Corbyn, the leader of the Labour Party, tried to get support from the Parliament for a second Brexit referendum but didn't get enough support. Also, speculation that the deal won't pass the MPs approval and comments from UK lawmaker Fallow earlier today, indicating that it's possible to delay the date estipulate to leave the EU in order to negotiate a better deal, undermined the Sterling. As the clock keeps ticking toward the departure date, the only thing clear is that the future relationship between both economies remains in the goodwill field. This Wednesday, the BOE will release its Financial Stability Report and banks´ stress tests result at 1630 GMT on Wednesday, followed by a press conference by Governor Carney.

The pair remained under pressure after breaking below the 1.2800 figure, spending the last session near the mentioned low as selling interest rejecting attempts to recover ground around 1.2780. The mentioned November low stands now as a key psychological support, with a break below it exposing the yearly low at 1.2661. In the middle is October low at 1.2690. The short-term technical picture is bearish as in the 4 hours chart, the pair extended its decline below a mild-bearish 20 SMA, also developing some 300 pips below a bearish 200 EMA, as technical indicators resumed their declines within negative ground, maintaining negative slopes ahead of the Asian opening.  

Support levels: 1.2720 1.2690 1.2660

Resistance levels: 1.2670 1.2815 1.2850

View Live Chart for the GBP/USD

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