GBPUSD technical outlook: Pair drops below mid-1.3100s

In this GBPUSD technical outlook, the pair struggled to capitalize on the Asian session bounce and dropped to fresh one-week lows, below mid-1.3100s in the last hour.

March 28, GKFX – The pair remained depressed on Thursday and looks set to extend the previous session’s late pull-back from weekly tops, which came after the UK Parliament rejected eight different indicative votes selected by Commons Speaker John Bercow – ranging from a no-deal, a second referendum and a Norway-style deal.

DUP remains firm to oppose the Brexit deal 

The fact that DUP will not support the UK PM Theresa May’s Brexit deal if it comes back for a third vote, and that none of its MPs will abstain, has made it highly unlikely that the deal could get enough votes to pass through the Parliament was seen as one of the key factors weighing on the British Pound. 

Moreover, Commons Speaker John Bercow has already made it clear that he would not allow another vote on the same deal unless it is substantially amended, which might further collaborate towards keeping a lid, rather prompt some fresh selling on every attempted recovery move. 

With the incoming Brexit headlines turning out to be an exclusive driver of the sentiment surrounding the British Pound, the pair remains unaffected by the US Dollar price dynamics and might also ignore today’s release of the final US Q4 GDP print, due later during the early North-American session.

GBPUSD technical outlook

Yohay Elam, FXStreet’s own Analyst offers important technical levels to trade the major: “Looking down, there are quite a few lines that could cushion the fall, with support awaiting at 1.3135 where we see the Fibonacci 38.2% one-month, the SMA 200-4h, and the Fibonacci 38.2% one-week.”

The long list above keeps GBPUSD tight, but once the pair chooses a direction, there is less resistance on the upside. The upside target is 1.3355 where we see the convergence of the previous monthly high, the Pivot Point one-day R3, and the Bollinger Band one-day Upper,” he added further.


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