GBP/USD Forecast: Sterling Falls To October Lows With 1.2790 New Price Target Amid A Brexit Impasse

• The GBP/USD fell 0.5 percent to trade at October 2018 low of below 1.2920 as the Brexit impasse continues.
• Almighty UK press reports that Prime Minister Theresa May has "lost control" over her government after the EU Brexit summit fail.
• The GBP/USD is trapped in a downward sloping trend with September low of 1.2790 becoming the next target price.

The GBP/USD is trading down 0.5 percent at around 1.2910 representing October 2018 low as the Brexit impasse continues. The almighty British media are mounting the reports of the UK Prime Minister Theresa May actually losing control over her own Conservative party lead government as the junior coalition Unionist party infuriated joined the Conservative party hardliners in their opposition to May and Brexit solution omitting the Irish border rule. 

Although both the European Union and the UK officials jointly say that about 90 percent of Brexit agreement has already been sorted out, the remaining 10 percent, especially the rules governing the Irish border issue seem to be the deal breaker for now. As the UK leaves the European Union officially on March 29th, 2019, the time is scarce to finish the deal.

The GBP/USD is trapped in a downward sloping trend framed by last week’s high of 1.3238 and Monday’s high of 1.3091. After falling sharply on Monday toward 1.2940, the GBP/USD recovered on Brexit optimism on Tuesday just to fall back to October lows on Wednesday. The corrective mode higher ended and the technical oscillators including Momentum, the Relative Strength Index both turned lower on a 1-hour chart. The Slow Stochastics made a bearish swing lower in the neutral territory and with GBP/USD falling to fresh October 2018 lows, the indicator is already deeply in the oversold area. oversold territory. After the GBP/USD reached the price target of 1.2920 the correction might see GBP/USD rising toward 1.2970. The directional move is still on the downside with 1.2790 representing September 2018 low becoming a new target.

GBP/USD 1-hour chart