GBPUSD cracks below retracement support

Technical Analysis

Author: Greg Michalowski | gbpusd

Below trend line/38.2% retracement/swing highs from Tuesday and Wednesday

The headline news that the EU/UK would not reach a deal today, has sent the GBPUSD now below the support defined by the:
  • 38.2% at 1.3442
  • Swing highs from Tuesday and Wednesday at 1.34408 and 
  • An upward sloping trend line at 1.3441
The low reached 1.34242.

Below trend line/38.2% retracement/swing highs from Tuesday and Wednesday
We are seeing a rebound back up toward the break level, but the bias shifted a little more to the downside on the news and price action.  

Earlier today, the GBPUSD traded up at 1.35387 which was the highest level since May 2018 and in the process moved above the 2020 and 2019 swing highs at 1.34816 and 1.35139 (see yellow area in the chart above). The move below that level turned the buyers to sellers which was helped by the Brexit news headlines. 

There is still high price risk into the weekend as Brexit talks will continue with UKs Johnson and EU Pres. Von Der leyen scheduled to speak tomorrow. Will they be able to tilt the conversation toward a deal? Or will the talks fully breakdown?

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