GBP/USD SELL OFF!
It seems like Theresa May’s visit to Belfast is already hurting the British Pound. The latest set of talks is expected to last two days.
These talks were in hope of generating a Brexit backup plan for the current deadlock.
Looking at the technicals, the GBP/USD weekly time frame peaked at 1.32100. This was due to the US government shutdown, which has recently weakened the US dollar. Price has since pulled back significantly and looks to be turning bearish. On the chart I’ve displayed the bullish trend line that broke a few days ago, causing the market to shift direction. Upon this price break, it continues to battle against our daily resistance at the 1.31000 level.
Since viewing the 4-hour and 2-hour time frames last night, the price has returned back to its favourite magical number of 1.3000…that's right once again!!! It’s now time to watch closely to see if there is enough selling pressure to continue this fall. If we remain below 1.3000, downside targets will be 1.28500 based on the previous consolidation.