Breaking: GBP/USD breaks 1.3000, 1.2950 now in focus – FXStreet

Breaking: GBP/USD breaks 1.3000, 1.2950 now in focus – FXStreet

GBP/USD has scored a low of 1.2993, breaking cleanly below the 1.30 psychological level on rocky Brexit risks.

The focus from here can now be on the long-term time frames.

Noting the monthly resistance and bullish impulse, we find a 38.2% Fibonacci target located at 1.2942.

The strong number of 1.2950 is therefor in focus:

Monthly chart

Weekly chart

Bearish below the weekly structure, target 1.2950 (green line).

Daily chart

The daily chart illustrates the structure more clearly where a potential pullback prior to reaching the monthly 38.2% target might find the supply.

We can see this even clearer on the 4HR time frame:

4HR chart 

A 38.2% Fibonacci of the latest bearish impulse has a perfect confluence with prior structure. 

However, given the fluidness of the fundamentals, technicals could well be washed away and insignificant at this stage until there is some stability levels in Brexit risks, but finding those are probably an even more difficult task.

Brexit talks have started this week on a rocky foundation. The risk of a No-Deal outcome remains.

The trick is finding an entry at a discount and not chasing the fall in GBP or selling it at the lows.

For additional technical analysis pertaining to Brexit risks and the pound, there is more here in an ongoing developing EUR/GBP story.

 

 

 

 

 

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