GBP/USD Outlook: Pound Falls Further on Renewed Fears of No-Deal Brexit

Technical analysis of Forex market

Cable fell further on Tuesday as the sentiment soured by news that risk of no -deal Brexit returns to play.

Top UK officials went to Brussels in last attempts to secure changes to PM May’s Brexit deal through the parliament and avoid disorderly no-Brexit scenario.

The situation complicated further on news that BMW may move production from UK in case of divorce without deal.

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Fresh bearish acceleration keeps the pair firmly in red for the fourth straight day and broke through key supports at 1.3154 (10SMA) and 1.3129 (Fibo 38.2% of 1.2772/1.3349).

Close below these points would further weaken near-term structure and generate negative signal for extension towards 1.3048/31 (30/20SMA’s), with risk of testing key support at 1.2993 (200SMA/Fibo 61.8% of 1.2772/1.3349) on stronger acceleration.

Weakening daily techs support scenario as 5SMA turns south and 10SMA turned sideways, while momentum weakened further and stochastic remains in steep descend. Broken 10SMA reverted to solid barrier at 1.3155, ahead of session high at 1.3198 and 5SMA at 1.3213.

Res: 1.3129; 1.3155; 1.3198; 1.3213
Sup: 1.3097; 1.3061; 1.3048; 1.3031

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