GBPUSD Makes Fresh daily Lows After Friday’s Rejection at 200-day MA
GBPUSD starts in weak mode the week as the optimism around Brexit deal fades away. EU chief negotiator Michel Barnier has briefed the EU ambassadors saying that Brexit negotiations have continued over the weekend but “no breakthrough yet”. Headlines that the US and China made progress in trade talks increased risk appetite last Friday. The two sides reached a partial trade deal. China announced purchases of U.S. agricultural commodities, while the US will not implement the planned tariff hike this week.
GBPUSD trades close to daily low, giving up 0.61% at 1.2567. The outlook is positive for GBPUSD despite today’s correction from three-month high at the 200-day moving average. Currently, on the downside, the first support level for GBPUSD stands at 1.2553 daily low and then at 1.2409 the 100-day moving average. On the upside, immediate resistance can be found at the daily high of 1.2644, with more offers probably emerging at the 1.2711 the 200-day moving average. Going forward traders must e cautious as the Brexit headlines will guide the movement of GBPUSD.