GBPUSD retreats today from five-month highs, giving up 0.03% at 1.2820 as headlines crossing the wires around the Brexit deal. German chancellor, Angela Merkel said that “we will negotiate on Brexit until the last minute”. Brexit talks will continue in Brussels during the European Council summit today. United Kingdom Retail Sales (MoM) came in at 0% in line with expectations in September, the yearly reading came in at 3.1% below expectations of 3.2%. A positive reaction on the news for GBPUSD, which added 25 pips.
GBPUSD trades close to daily high,after the retail sales figures. The outlook is positive for GBPUSD despite today’s correction from five-month high. Currently, on the downside, the first support level for GBPUSD stands at 1.2748 daily low and then at 1.2712 the 200-day moving average. On the upside, immediate resistance can be found at the daily high of 1.2833, with more offers probably emerging at the 1.2876 yesterday’s high. The critical point for the short term momentum is 1.2712; bulls are in control when the pair trades above that level, while a move below will be a bearish signal. Going forward, investors must be cautious as the Brexit headlines will guide the movement of GBPUSD.