OctaFX – The British pound has fallen towards the 1.3200 support level against the US dollar, as bearish Brexit headlines surfaced surrounding the Customs Union during the European trading session.
GBPUSD Falls on Brexit Negotiations
On Wednesday, the GBPUSD pair moved above the important 1.3217 level. This was the highest level since September 27. It was also the end of the cup level that the pair had been establishing.
Gains by the GBP were because of the USD weakness and the hopes that a compromise will be found on Brexit negotiations. The ADX is currently at 25, an indication that the strength of the trend has eased.
Similarly, the double EMA shows that the gap between the two has narrowed. Therefore, while the pair could continue moving up, traders should be cautious because it might also move lower to complete the cup and handle pattern.
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