GBP/USD Daily Price Forecast – GBP/USD Turns Dovish on Brexit Woes as Tory Eurosceptics Plan to Make EU’s Northern Ireland Backstop Illegal.

The past twenty-four hours have seen the GBP/USD trading into the basement after slipping from yesterday’s peak of 1.3090 in a last-ditch attempt to recover the 1.3100 major handle, but the Sterling couldn’t find the bullish drive as Brexit headlines continue to erode investor confidence in the Pound, and the Cable is now accelerating its bearish momentum. The GBP/USD pair yesterday fell to 1.2955, its lowest in over two weeks, following headlines indicating that the Democratic Unionist Party from Northern Ireland (DUP) was said to back the amendment being tabled by Tory Eurosceptics next Wednesday, possibly making then the EU’s Northern Ireland backstop illegal. Market players ignored early headlines coming from UK’s PM May, who said that 95% of the EU’s withdrawal deal, is settled.

GBP/USD Fell Below 1.30 Handle on Broad Based Dovish Sentiment Surrounding Sterling

Addressing to the House of Commons, she also added that an extension of the implementation period is undesirable, although, under certain circumstances, it could be useful. As of writing this article, the pair is trading at 1.2957 down by 0.06% on the day. The dollar pared its advance mid-US afternoon, resulting in the pair bouncing some modest 20 pips from the mentioned low. The UK macroeconomic calendar this Tuesday includes the CBI Industrial Trends Orders Survey, and a speech from BOE’s Governor Carney, due to speak about artificial intelligence and the world economy at the Annual Machine Learning and the Market for Intelligence Conference. With Brexit at the forefront once again, Tuesday’s economic calendar is looking thin during today’s market hours.

The Sterling is set for a continued leg lower on the technical side of thing. The 4 hours chart for the GBP/USD pair indicates that the negative momentum could prevail, moreover if the pair remains below the 1.3000 figure. In the mentioned chart, the 20 SMA heads sharply lower, now breaking below the 200 EMA, this last a strong dynamic resistance that the pair was unable to break earlier in the day, while technical indicators remain well into negative ground, the RSI now consolidating around 1.3000. October low comes at 1.2921, with a break below it exposing 1.2880, the 61.8% retracement of the 2016/18 rally. Expected support and resistance for the pair are at 1.2955, 1.2920, 1.2880 and 1.3000, 1.3040, 1.3085 respectively.