GBP / USD Current Price: 1.3357
- The chances of a post-Brexit deal appear to be diluting.
- British Chancellor Sunak has said the UK should not prolong a Brexit deal at all costs.
- GBP / USD loses its bullish potential, could turn bearish on a break below 1.3290.
GBP / USD is lower on Thursday, trading around 1.3360 ahead of the Asian open. The British pound was unable to extend its gains beyond 1.3400 against the greenback after EU chief negotiator Michel Barnier threatened to conclude Brexit negotiations unless the UK is not prepared to give in on critical issues. British Chancellor Sunak said on Thursday that the UK should not be pushing hard to secure a Brexit deal, somehow dampening hopes of a post-Brexit trade deal.
The UK did not release macroeconomic data on Thursday and has little to offer on Friday, as it will release housing prices across the country in November. Brexit-related headlines will continue to determine the direction of GBP / USD.
GBP / USD Short Term Technical Outlook
GBP / USD is losing its bullish potential but at the same time remains far from bearish. The 4 hour chart shows the pair stuck around a flat 20 SMA, while the longer moving averages continue to move firmly higher well above. The Momentum indicator has rebounded from its 100 line, while the RSI is flat around 52. The bearish case will firm on a breakout below 1.3290, the immediate support level.
Support levels: 1.3290 1.3250 1.3205
Resistance levels: 1.3365 1.3410 1.3460
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