GBP/USD mired in 1.2750 ahead of BoE Gov Carney's Brexit agreement testimony
- Sterling heads into BoE Carney's Brexit agreement testimony today.
- Brexit angst returns to the forefront as investors brace for a tense vote on December 11th.
With last weekend's G20 Leaders' Summit, and the short-lived pump for risk appetite that followed, clearly behind us, investor concerns have once again swung back to bring Brexit concerns back into full focus, with a long round of debates on Prime Minister Theresa May's current Brexit proposal set to start today, culminating in a yes/no vote in the UK's House of Commons on December 11th.
Today sees the Bank of England's (BoE) Governor Mark Carney testifying before the Treasury Select Committee, alongside three of his Deputy Governors, in London today, with the actions slated to start at 09:15 GMT. Governor Carney and his three Deputies will be delivering their testimony on the current Brexit Withdrawal Agreement, and Carney's words could heave the GBP markets.
GBP/USD levels to watch
With the Cable struggling for air at the 1.2750 level, further action could be seen twisting towards the downside, according to FXStreet's own Valeria Bednarik: "the pair bounced with dollar's weakness in the American afternoon to turn neutral daily basis, now hovering around 1.2740. The early rally was rejected by sellers around a daily descendant trend line coming from November high at 1.3174 and settled below a mild-bearish 20 SMA in its 4 hours chart, also far below the 200 EMA. Technical indicators in the mentioned chart have managed to bounce from their daily lows but remained below their daily highs and below their mid-lines. As commented on previous updates, the upside seems well limited as it would take at least a recovery above 1.2880, the 61.8% retracement of the 2016/18 rally to take some pressure of the Pound."
Support levels: 1.2725 1.2690 1.2665
Resistance levels: 1.2770 1.2805 1.2840
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
