GBP/USD: Britain and the EU failed to strike a Brexit divorce deal


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP slightly rose against the USD and closed at 1.3474. Yesterday, the European Commission President, Jean-Claude Juncker and the British Prime Minister, Theresa May failed to reach an agreement on an initial Brexit divorce package.

Macroeconomic data indicated that Britain’s Markit construction PMI rose to a level of 53.1 in November, expanding at its fastest pace in five months, thus highlighting that the sector has regained some steam in the final quarter of this year. The PMI had recorded a reading of 50.8 in the prior month, while markets had expected for an advance to a level of 51.0.

In the Asian session, at GMT0400, the pair is trading at 1.3468, with the GBP trading marginally lower against the USD from yesterday’s close.

The pair is expected to find support at 1.3408, and a fall through could take it to the next support level of 1.3349. The pair is expected to find its first resistance at 1.3533, and a rise through could take it to the next resistance level of 1.3599.

Trading trend in the Pound today is expected to be determined by the release of UK’s Markit services PMI for November, set to release in a few hours.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

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