The GBP/USD testing 1.2900 resistant again and again. It is a clear sign of upcoming downtrend in near future.
Deadline for the Brexit has been pushed back to November. The GBP/USD trying to continue uptrend but don’t have enough potential to break the uptrend resistant of 1.2900.
The GBP/USD is trading below 1.2900 after reaching a peak of 1.2930 on Tuesday. Brexit arrangements proceed, and both the European Union and the United Kingdom reasoned that the achieving an arrangement in mid-October, at the EU Summit, is very doubtful. The new due date is at some point in November. Any defer expands the danger of a no-bargain Brexit which markets fear. Get daily forex trading advice from forex experts for free.
Additionally, the US Dollar is recuperating some lost ground. The perky inclination that took after the US-Mexican arrangement is blurring, and worries about US-Chinese relations is rising. The greenback got a lift from the Conference Board’s Consumer Confidence measure which hit the most elevated amounts since the year 2000.
The primary indicator of the day is the second estimate of US GDP for Q2. A small downgrade is on the cards after the robust read of 4.1% initially published. No big announcements from the UK, everyone has eyes on Brexit and US data.
Technical Line Chart
The GBP/USD is exchanging close by an uptrend bolster line since mid-August. The match plunged underneath the pattern line prior yet figured out how to recover it. It hit the 50 Simple Moving Average on the four-hour diagram. The Relative Strength Index and Momentum are steady.
Support awaits at 1.2845, the day’s low and the 50 SMA. Lower, the round number of 1.2800 supported the pair last week. 1.2760 limited the pair’s rise in mid-August and 1.2730 supported cable before it shot higher.
1.2940 is a double top after holding the pair down last week and also during this week. 1.3000 is a round number that also had a role in both directions. 1.3045 supported the GBP/USD before it tumbled below 1.3000. Source