Technical Analysis: GBPUSD pulls back from 100-SMA despite cautious optimism over Brexit

Technical Analysis: GBPUSD pulls back from 100-SMA despite cautious optimism over Brexit

Weekend headlines suggesting one more week of Brexit talks offered a jump of over 100 pips to the GBPUSD at the start of Monday's trading. However, the upside momentum couldn't ignore fears of a no-deal Brexit while stepping back from 100-SMA. As a result, the sellers are looking to fill the gap between the 200-SMA level of 1.3231 and the day's open around 1.3340/45. It should be noted that an eight-day-old falling channel formation keeps the sellers hopeful. Though, a confluence of the channel support and 61.8% Fibonacci retracement around 1.3110 becomes a tough nut to crack for the sellers.

On the contrary, the bull's ability to cross 100-SMA, at 1.3352 now, will eye for the stated channel's upper line, currently around 1.3415. However, any further upside will be challenged by the RSI conditions and the latest high, also the highest since May 2018, near 1.3540. Overall, the fears of a no-deal Brexit remains on the table and can keep haunting the GBPUSD bulls until December 31.

Trade Forex with MTrading

Join us on FB and Twitter to stay updated on the latest market events.