The GBP/USD took a massive pounding on Thursday over dwindling hopes of a Brexit trade deal before the transition period ends three weeks from today.
Comments from key players in the process dampened sentiment on the Pound. President of the European Council Charles Michel hinted that there was no room for Brexit’s long debate in remarks to reporters before the council’s meeting. European Commission President Ursula von der Leyen was also quoted by Reuters as saying that a “fair balance” on Brexit had not been achieved. Von der Leyen also hinted at a Brexit decision on Sunday.
There have been no reactions from the UK side this Thursday at the time of filing this outlook report. The GBP/USD is down 0.92% as of the time of writing.
Technical Levels to Watch
Today’s slide in the GBP/USD is now challenging the 1.32663 support. A breakdown of this support opens the door towards the lower channel boundary’s intersection with 1.31754. The disintegration of the lower edge of the channel is required for sellers to target 1.30554 initially, with 1.29469 also lining up as a potential downside target.
On the flip side, a bounce off the current support allows the pair to retest the 1.33193 resistance. 1.3400 serves as psychological support above this level, with 1.34765 (9 Dec high) serving as additional resistance.
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GBP/USD Daily Chart
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