Technical Analysis: GBPUSD drops to 21-day SMA as Brexit talks dwindle
Although the European Union (EU) and the UK didn't leave the table on the expire of the previously cheered October 15 deadline for the Brexit talks, GBPUSD remains sluggish ahead of UK PM Johnson's speech on the future negotiations. The pair remains on the back foot near a short-term SMA support level of 1.2885 before highlighting an ascending trend line from June 29, at 1.2785. Although the quote is more likely to bounce off 1.2785, amid expectedly soft Brexit, any miss will have a 61.8% Fibonacci retracement level of 1.2720 and September bottom near 1.2675 on the Bears' radar.
On the upside, a confluence of 50-day SMA and 38.2% Fibonacci retracement near 1.3020 precedes the monthly top surrounding 1.3085 to restrict the pair's near-term advances. If at all the GBPUSD bulls manage to cross 1.3085, the 1.3100 and July highs close to 1.3170 will be crucial to follow before looking at the 1.3280 resistance.