GBPUSD Price to Test Strong Support; Brexit Mayhem, Political Meltdown
GBPUSD Price and Latest Brexit News:
- GBPUSD fades into strong support.
- Brexit deal increasingly unlikely. PM May’s position looking untenable.
GBPUSD Nears a Cluster of Support
After spiking up to a one-month of 1.3180 last Friday, GBPUSD has been fading lower and is now trading either side of 1.3040 as UK politics weigh on the British Pound. The US dollar is trading lower, yet the pair continue to slip as Brexit reasserts itself with talk that the UK will now take part in the European elections, that PM May’s leadership is under serious threat and that a second referendum is being openly discussed. Ongoing cross-party Brexit talks have produced no new ideas or plans, and it may be that the Labour Party now push for a General Election, another negative for Sterling. GBPUSD has traded with a positive Brexit premium built in over the last few weeks but this now seems to be gradually being priced-out.
GBPUSD nears a cluster of support that needs to hold if the pair are to move higher. The 50-day moving average is situated at 1.3010, ahead of the 200-day ma at 1.2972 and the horizontal trend support around 1.2960. It is likely that the last of these three levels should hold if tested although a break and close below would open Fibonacci retracement at 1.2894 and the recent near three-month low at 1.2866.
GBPUSD Daily Price Chart (August 2018 – May 8, 2019)
Retail traders are 64.5% net-long GBPUSD according to the latest IG Client Sentiment Data. See how recent daily and weekly positional changes affect GBPUSD and currently give us a stronger contrarian bearish bias.
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