GBP/USD technical analysis: Cable trading below the 1.2900 handle after the London close

 

 

 

The Pound, on the daily chart, had a spike above the main daily simple moving averages (DSMAs) while hitting levels not seen since mid-May 2019. The Brexit headlines are the main catalysts behind the GBP/USD rollercoaster. The UK Parliament rejected the PM Boris Johnson’s fast-track process for approving the Brexit deal. Elections can be next along with an extension of the Article 50.

 

 

The Sterling is trading in a bull channel above its main SMAs. After a retracement down, the spot is challenging the 1.2900 handle. A break above 1.2908 could potentially lead to further gains towards 1.2935/50 resistance zone, according to the Technical Confluences Indicator. 

 

 

 

GBP/USD is trading below the main SMAs, suggesting a bearish momentum in the near term. Bears need to break the 1.2815 support to travel towards the 1.2772 price level, according to the Technical Confluences Indicator.