GBP/USD Daily Price Forecast – GBP/USD Flat Ahead of UK retail sales release On Brexit Woes

The GBP/USD pair printed an intraday high and low of 1.3125 and 1.3098 yesterday before closing on a flat note at 1.3144. Essentially, the currency pair charted a big doji candle, which indicates indecision in the marketplace. The pair now moves on neutral stance on reports from Reuters that the European Union’s Commission President Jean-Claude Juncker splashed some cold water on rising hopes of quickly securing a Brexit deal for the UK, claiming that a workable Brexit solution is still “far away”. Shortly after arriving at a summit in Austria yesterday, Juncker was asked about how far apart the two sides of Brexit were, considering hopes of concluding a deal within the next two months continue to pin the needle to the high side.

Juncker’s Comments Crush Hopes of Speedy Brexit Deal

Officials on both sides have claimed that a workable withdrawal treaty is “complete”, but serious differences remain on trade terms as well as the Irish border issue, and European Union officials have warned that failure to reach an acceptable border solution would see the total failure of what Brexit agreements are currently in place, and Juncker flashed some warning signs that the EU and the UK remain very far apart on how to resolve those key issues, throwing a speedy Brexit deal into doubt. As of writing this article, the GBP/USD pair is trading near flat at 1.3150 up 0.05% on the day.

Looking forward, the rally from the Sept. 5 low of 1.2785 would resume if the pair closes today above 1.3215. On the other hand, a close below yesterday’ low of 1.3098 would validate the bear failure at the 100-day MA hurdle and open the doors for a deeper pullback. An above-forecast UK retail sales reading could help the GBP secure a bullish close, while a big miss on expectations could prove costly. Moreover, GBP is already on the defensive, courtesy of the negative Brexit news-flow. Expected support and resistance for the pair are at 1.3133, 1.3098, 1.3075 and 1.3158, 1.3215, 1.3281 respectively.