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GBP/USD Outlook: Cable Stands At The Back Foot Following No Breakthrough In Trade Talks

Early Thursday’s action is keeping negative tone but long shadows on daily candles in past few sessions signal lack of clear direction.

Pullback from new 2020 high at 1.3538 cracked initial supports at 1.3335/30 (Fibo 23.6% of 1.2675/1.3538/rising 20DMA) but without clear break lower so far that keeps the downside limited.

Fading bullish momentum on daily chart and south-heading RSI, keep near-term focus shifted lower, helped by next week’s magnetic daily cloud twist, while the action remains weighed by falling thick monthly cloud.

Fresh weakness eyes pivotal supports at 1.3252 (30DMA) and 1.3208 (Fibo 38.2%), break of which would generate bearish signal for deeper correction of 1.2675/1.3538.

Traders keep Brexit trade talks (pound’s key driver) in focus as UK PM and EU’s chief executive gave themselves until the end of the weekend to overcome key differences and eventually reach an agreement, to prevent disastrous no-deal scenario, as the UK will officially leave EU’s trading orbit on Dec 31.

Res: 1.3335, 1.3378, 1.3413, 1.3477
Sup: 1.3289, 1.3352, 1.3224, 1.3208