GBP/USD consolidates around 1.33, all eyes on PM May's visit to Brussels

GBP/USD flat-lined around 1.33, but bias bullish.
British PM heads to Brussels.

Omkar Godbole FXStreet Contributor

GBP/USD continues to trade in the sideways manner around 1.33 amid Thanksgiving lull.

The currency pair witnessed a much-awaited big break above the 50-day MA on Wednesday, but the bullish move failed to cut through the Oct. 13 high of 1.3338. Still, the bias looks bullish as indicated by the momentum studies - 5-day MA, 10-day MA curl upwards.

Focus on May's visit to Brussels

As per Reuters report, PM May is expected to raise her offer to secure a Brexit deal in December. Also, hopes in Brussels have been raised by reports in the British media that May has the backing from pro-Brexit hardliners in her cabinet to increase the amount of a financial settlement of what Britain needs to pay to the EU.

Still, the odds of a breakthrough in talks are low as May has little room to please both sides, i.e. the EU and the Britons who want their PM to take a tough stance during negotiations. Failure of talks could weigh over GBP, although broad-based USD weakness could ensure the losses are limited.

GBP/USD Technical Outlook

A break above 1.3338 (Oct. 13 high) would expose 1.34 (zero levels) and 1.3416 (61.8% Fib R of Sep. 20 high - Oct. 6 low). On the downside, breach of support at 1.3280 (5-day MA) could yield a pullback to 1.3250 (50-day MA) and 1.3226 (10-day MA).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	Shrinking
1H	Strongly Bearish	Neutral	Low
4H	Bearish	Neutral	Expanding
1D	Bearish	Overbought	Shrinking
1W	Bearish	Neutral	Shrinking
Updated Nov 24, 03:00 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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