GBP/USD: Brexit still leading GBP bulls by the nosering, down to 1.2700
- The Pound is steeply off of recent highs as Brexit concerns pummel investors.
- A data-thin Wednesday sees the GBP exposed to continued risk-off flows.
The GBP/USD is trading into the 1.2700 level as the British Pound continues to lose ground across the board, with disappointing economic data for the UK's domestic economy highlighting the rising potential for a no-deal Brexit, a proposition that sees Sterling traders heading for the hills as the GBP is down over 4% against the Greenback in three weeks of trading.
Wednesday sees the Sterling's economic calendar data-free, and the London market session will see investors facing down continued Brexit headlines that showcase the still-vast distance between the two sides of the EU-UK negotiations. The last few rounds of indicators for the UK economy have failed to spark confidence, but the day could see knock-on volatility once again from Europe, with the European Union's broad CPI preliminary report slated for 10:00 GMT, with the annualized major indicator for october forecast to come in at 1.0% (previous 0.9%), and a missed showing here could further spark risk aversion throughout the broader European theater.
GBP/USD levels to watch
The Brexit slump looks set to continue, and according to FXStreet's own Valeria Bednarik: "from a technical point of view, the pair is oversold in the short-term, but there are no signs that the ongoing slump can change course, as in the 4 hours chart, the pair continues developing below a firmly bearish 20 SMA, while technical indicators hold at weekly lows, the RSI currently at 22. Below the mentioned yearly low, the next relevant level and a possible bearish target is 1.2588, June 2017 monthly low. Still unclear, a break below the 1.2500 level should open doors for a continued slump, despite the mentioned oversold conditions."
Support levels: 1.2775 1.2740 1.2700
Resistance levels:1.2850 1.2880 1.2925