GBPUSD Lower with No Deal Brexit a 'Strong Possibility'

Summary:

GBPUSD was lower on Friday with continued Brexit gloom. Sterling was trading at 1.3230 after PM Johnson said there was a "strong possibility" of a No Deal.

GBPUSD was 0.50% lower on Friday as the pair continues lower on Brexit deal gloom. Sterling was trading at 1.3230 after PM Boris Johnson said there was a “strong possibility” of a No Deal outcome.

After Johnson’s failed meeting on Wednesday the pound was under pressure with comments that a deal was unlikely with anew deadline agreed for Sunday. The Prime Minister said there was, “a strong possibility — that we will have a solution that is much more like an Australian relationship with the EU than a Canadian relationship with the EU”.

The pound is selling off but the volatility is still muted and there could be complacency here. Traders are maybe expecting a last-minute deal, but some are looking towards new talks in 2021, or an extension from Sunday’s deadline. We can’t rule out a volatile open on Sunday and Monday if an agreement doesn’t arrive.

GBPUSD Technical Outlook

GBPUSD created a double top at the 1.3480 level and the pair is now making a move towards the 50-day moving average at 1.3150. If the price gets below this then there is a chance of a move to 1.2800 0r 1.2670. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.