The increasing uncertainty about a trade deal being worked out before the Brexit transition period ends in 36 days is putting pressure on the Pound. Only the dovish Fed minutes is capping the downside on the pair this Thanksgiving holiday.
Apart from Brexit news, GBPUSD traders should be on the lookout for the new tiers of coronavirus restrictions in the UK due to be announced Thursday.
Technical Outlook for the GBPUSD
The pair has been rejected at the 1.3400 psychological resistance, at the upper border of the ascending channel. The pullback that is now in progress may meet initial support at 1.33193 (11 November high in role reversal). This price level, along with 1.32663 and 1.31754, has to give way to selling pressure for the pair to attain the channel’s lower boundary. However, a breakdown of the channel and the 1.30554 support (lows of 21-25 August) allows the pair to target 1.29469.
On the flip side, a break above the channel’s upper border at 1.34000 opens the door for the price to aim for the 1 September high at 1.34765. 1.36117 is an additional target to the north, which correspond to the June 2018 high. Progress in the Brexit talks that eventually culminate in a trade deal could allow the cable to accomplish this feat.
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GBPUSD Daily Chart
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