GBP/USD Outlook: Pound Extends Pullback on Risk Aversion and EU-UK Fishing Problem

Technical analysis of Forex market

Cable extends weakness on Wednesday, following 0.7% drop previous day, after President Trump deflated risk mode by calling off stimulus talks.

The pound came under fresh pressure today after Ireland highlighted EU-UK fishing problem, the one of key obstacles in trade talks.

Monday’s rejection at strong 1.30 resistance and subsequent fall that formed bearish engulfing pattern on daily chart, weighs on near-term action, with today’s probe below pivotal daily cloud base (1.2866) boosting negative signal.

– advertisement –

Daily close below 1.2880/66 pivots (Fibo 38.2% of 1.2675/1.3007/daily cloud base) would confirm bearish signals and open way for further easing. Brexit trade talks remain key event and pound could be hit hard if the European Union and Britain fail reach a trade deal.

Res: 1.2929; 1.2982; 1.3007; 1.3016
Sup: 1.2866; 1.2845; 1.2801; 1.2753