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GBP/USD Forecast: Sterling Supported, Needs To Regain $1.3445 To Move Higher

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In the heat of the Brexit negotiations and domestic political issues, Sterling struggles to break from corrective, sideways movement against the US Dollar. Brexit minister David Davis is set to address the Brexit committee on Wednesday with the UK Prime Minister possibly appearing in Brussels in an effort to secure the Brexit negotiations moving to trade deal before the year-end.

At the domestic political scene, UK Prime Minister Theresa May is facing a conservative party revolt with Brexit hardliner Boris Johnson and Michael Gove over her plan to keep UK regulations aligned with the European Union after Brexit. This adds up to the unresolved issue of the Irish border that is unconditionally demanded from the UK in Brexit negotiation.

The exchange rate of GBP/USD fell for the second day in a row to trade at around $1.3380 on Wednesday before the headlines from Brexit negotiations hit the market.

The 4-hours chart sees GBP/USD moving in a broader channel upwards with $1.3450 representing 23.6 percent retracement of the uptrend from August 23 to current cyclical peak of $1.3650 now looking as a key resistance on the upside.

On the downside, the GBP/USD is supported by pitchfork channel trendline at around $1.3360 level that served previously as Sterlings resistance line.

GBP/USD 4-hours chart

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Source: FXStreet

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: FXStreetNews Eurozone Technicals Forex Markets Trading Ideas

 

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