GBP/USD has got stuck in a consolidation range between just under 1.33 and 1.3440 as the markets are responding to Brexit news. The British pound sterling is giving back the gains today as concerns over a no-deal Brexit intensified.
To the upside, for now, upper trend line is acting as a dynamic resistance. Therefore, price action needs to break above this level to continue further. Preference for long positions above 1.3340 with targets at the previous 1.3440 high. That being said, prices seem to challenge the one-year high round figure mark 1.350 if psychological support remains intact.
However, bearish MACD divergence suggests that GBPUSD rallying from the September low could be running out of steam. The MACD histogram's notable decline in recent days also hints a fading bullish momentum.
The previous day declines coincide with the 1.3300 level where support is currently holding. As long as this level holds, GBPUSD could remain biased to the upside. But a close below this support will open the way for further declines. The next key support level to the downside is near the 1.320 round figure mark price region.
