- The increasing likelihood of a no-deal Brexit scenario may significantly undermine the politically-sensitive pound in the near term.
- GBP/USD reverse sharply after price forms a bearish Shooting Star candlestick at key resistance of 1.35.
GBP/USD has fallen rapidly below 1.33 as Brexit remains at an impasse. UK PM Johnson is reportedly ready to abandon talks. Negotiations continue in Brussels.
The pound/dollar pair has tumbled rapidly on the four-hour chart today reacting to the formation of Bearish Shooting Star Candlestick (Friday Close) on the daily chart. On the other hand, the fall was so sharp that it also pushed the Stochastic Oscillator to 13.36 into oversold conditions.
The daily low of 1.3225 currently provides some support and it is followed by the level of 1.3200 which supported the currency pair in mid-November. Further down, the next support is found at 1.3110. Will cable make a short term correction before a next drop?
Critical key resistance is located at the1.33 round figure mark which was a swing low and high in November. The next barrier comes from a month old ascending trendline which was broken in the earlier-sessions which may act as an upside barrier.
