Sterling falls as UK draws a hard line ahead of post-Brexit trade negotiations

Technical Analysis

Author: Justin Low | gbpusd

Cable falls back towards the lows for the year

GBP/USD H1 27-02
The pound has eased after the UK published its negotiating mandate ahead of trade talks with the EU next month, which basically ran opposite to the red lines drawn out by the EU earlier in the week.

The UK affirms that it will not sign up to any alignment with EU rules, practically clashing over the key focus of the EU mandate on the need for a 'level playing field'.

With the UK also threatening to walk away if talks go south within the next few months, this is putting fresh pressure on the pound as cable falls towards 1.2870 currently.

Daily support is currently seen around 1.2872 with the year's lows near 1.2850 being key levels to watch in the sessions ahead for cable.

GBP/USD D1 27-02

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