The British pound is testing towards the 1.2960 support level against the US dollar after bearish Brexit news caused a sharp price reversal in the GBPUSD pair on Monday. What is next? Today's technical forecast explains.
23 October, OctaFX – The sterling continued the declines started on Friday. Yesterday, Theresa May tried to assure the market that a Brexit deal with the EU will work out.
Brexit Deal 95% Done
She said that Brussels and the UK were working for a temporary UK-EU customs territory solution. In recent weeks, it has become clear that a deal between the EU and the UK will be difficult especially when it comes to the Irish border.
In fact, officials have said that the deal is almost done with concerns over Island being the only issue. Today, traders will focus on a speech by BOE Governor, Mark Carney and the CBI Industrial trends orders.
GBPUSD Technical Forecast
A strong break below the 1.2960 level exposes further intraday downside towards the 1.2900 support level. Sellers are also close to negating the bullish inverted head and shoulders pattern across the lower time frames.
- The GBPUSD pair is strongly bearish while trading below the 1.2960 level, key support is now found at the 1.2918 and 1.2885 levels.
- If the GBPUSD pair moves above the 1.3000 level, buyers are likely to test the 1.3055 and 1.3080 resistance levels.
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