GBP/USD Forecast: Brexit Consequences Get Exported As Remains Of The Empire Enrages Spain

• Spain said it will vote against the Brexit agreement asking for the text amendments to Gibraltar proposal.
• The plan of the UK Prime Minister Theresa May to scrap the Irish backstop to win the approval for Brexit agreement makes hardline Brexiteers angry.
• The Brexit uncertainties keep Sterling bind to 1.2800 level.
• The Bank of England officials including Governor Mark Carney testify in the House Treasury committee on November Inflation Report outcomes.

The GBP/USD is trading little changed at around 1.2850 after slumping from 1.3070 to 1.2722 last week. The GBP/USD pulled from the daily highs of 1.2882 after Spanish Prime Minister Pedro Sanchez said the Iberian country will vote against the Brexit agreement if the current Gibraltar text is in place claiming additional changes to the text of the proposal. 

Meanwhile, the Bank of England top officials including Governor Mark Carney testify at the Treasury Committee of the UK parliament on the outcome of the November Inflation Report.

“No-deal Brexit is an unlikely scenario,” the Bank of England Governor said in front of the members of the UK parliament Treasury committee on Tuesday.

The remarks from the Bank of England officials are unlikely to differ from the Inflation Report press conference itself with the Bank staying on the sidelines of commenting the political development repeating its key message that no-deal Brexit is an unlikely scenario. 

The GBP/USD currency pair continues to slide lower in a downward sloping trend on a daily chart. With Brexit deal about to be approved possibly before the weekend European summit on Brexit scheduled for November 25, the potential for the upside mounts as the Momentum and the Relative Strength Index both remain in the neutral zone and pointing higher. The Slow Stochastics is sliding lower in the neutral territory. The golden cross of a 50-day moving average crossing over a 100-day moving average to the upside was formed on a daily chart indicating final trend reversal targeting 1.3060 before moving to 1.3380 and 1.3460 important Fibonacci level. The future of the GBP/USD depends on the Brexit deal with failure to get it approved could see the GBP/USD fall toward 1.2660 first before testing 1.2100, the post Brexit referendum low before the upward correction started back in March 2017. 

GBP/USD daily chart