- GBP/USD price action remained suppressed as recent development around Brexit remain uncertain.
- Chances of a “no deal” seems to have increased according to investment banks.
- RSI divergence points for a possible short term reversal if a Brexit catalyst allows for it.
GBP/USD price action remains subdued and in consolidation. Furthermore, the RSI divergence indicates the probability of a short term reversal.
Theresa May appears to be losing ground in the commons house. Various investment banks and market analysts point to the increased probability of a no deal.
The key support level of 1.2700 seems to be holding firmly. Any decisive break out and close below could mean more downside for the GBP/USD pair.
Meanwhile, any no Brexit deal could send the pair higher, as Brexit risks could fade in the background.
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