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GBPUSD Struggles at 1.3300 – A Correction Could Be Next

GBPUSD
GBPUSD

GBPUSD is lower by 0.20% after the pair struggled to get above the 1.330 level yesterday. Brexit talks are still at a stalemate and the pound could see sellers emerge if the situation drags on.

Yesterday saw U.K. inflation tick higher but sterling has been unable to capitalize due to other headwinds. The country is still seeing further virus restrictions with Scotland now moving to a full lockdown and England subject to a tiered system of confinement.

One boost for Britain has been the signing of a new trade agreement with Canada, which will replace the current arrangement they have via the EU. Without a new deal, Canada would’ve also been subject to tariffs with the U.K. and Europe on January 1st.

Belgium, France, and the Netherlands are now pushing EU Commission president Ursula von der Leyen to release the bloc’s No Deal contingency plans in order for businesses to prepare for the event of failed talks. This is highlighting frustration and fears at the slow pace of talks with the deadline approaching.

GBPUSD Technical Outlook

GBPUSD resistance at 1.3300 yesterday and the repair is now struggling to get higher. If we see a bearish close today then the pair could drop to test the 1.3100 level with 1.300 being the bigger target. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.

GBPUSD Daily Chart