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Oct 23 - 12:12 PM
GBP/USD - COMMENT-Brexit Skepticism Shows Below The Surface In Sterling
First appeared on eFXplus on Oct 23 - 09:55 AM

As the UK inches, ever so slowly, toward its Brexit conclusion, GBP/USD traders remain skeptical.
The pound is up slightly at 1.2876, near the top of Wednesday's 1.2897-1.2842 range, but remains below its recent trend high just above 1.3000 nL2N2780F8.
Though parliament has ratified PM Johnson's deal, the delay beyond Oct.
31, with theEU expected to grant a delay until January, injects some political uncertainty back into the equation, weighing on GBP/USD.
Not one to go quietly, PM Johnson, reacting to the timetable delay, has said he would abandon attempts to ratify the deal and seek an election before Christmas.
With a hard Brexit off the table, downward pressure on GBP/USD has been greatly reduced and despite some GBP/USD weakness related to general election uncertainties, a hard floor has likely been put in near recent lows by 1.2000.
For now resistance at 1.3012 the Oct. 21 high, near the weekly cloud twist, and the 200-DMA by 1.3149 should cap GBP/USD, with the rising 10-DMA at 1.2791 providing support, assuming the Brexit delay nL2N2780E2 is granted by the European Union.


GBP Chart: Click here

Source:
Refinitiv IFR Research/Market Commentary

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