The GBP/USD pair witnessed good two-way trades last hour, now bouncing-back towards the 1.2725/30 region following a test of the 1.2700 support.
The volatile trading seen in the spot can be mainly attributed to latest developments surrounding the Brexit vote, with the UK PM Theresa May sounding very firm on her Brexit deal, citing that “it’s my deal, no deal, or no Brexit at all”.
Her comments knocked-off the Cable to the 1.2700 level before reversing quickly on the headlines that the European Court of Justice (ECJ) will release its ruling on Article 50 of the Treaty of European Union on December 10 at 8:00 GMT. Note that the ECJ aide said earlier this week that the UK could unilaterally revoke Article 50 if it chooses so.
However, GBP/USD is likely to remain exposed to downside risks amid looming Brexit uncertainty ahead of the Dec. 11th meaning vote and as the US dollar remains broadly bid amid a risk-off market environment, fuelled by the latest US-China feud. China is enraged after the US asked Canada to arrest the Chinese company, Huawei, CFO and called for extradition.
Looking ahead, fresh Brexit headlines will continue to influence the pair until the release of the Fedspeaks and the US macro news, including the ISM non-manufacturing PMI release.
GBP/USD Technical Levels
Today Last Price: 1.2723
Today Daily change: -8.0 pips
Today Daily change %: -0.0628%
Today Daily Open: 1.2731
Previous Daily SMA20: 1.2831
Previous Daily SMA50: 1.2944
Previous Daily SMA100: 1.2964
Previous Daily SMA200: 1.3298
Previous Daily High: 1.2798
Previous Daily Low: 1.2672
Previous Weekly High: 1.2864
Previous Weekly Low: 1.2725
Previous Monthly High: 1.3176
Previous Monthly Low: 1.2723
Previous Daily Fibonacci 38.2%: 1.275
Previous Daily Fibonacci 61.8%: 1.272
Previous Daily Pivot Point S1: 1.2669
Previous Daily Pivot Point S2: 1.2608
Previous Daily Pivot Point S3: 1.2543
Previous Daily Pivot Point R1: 1.2796
Previous Daily Pivot Point R2: 1.286
Previous Daily Pivot Point R3: 1.2922