GBP/USD: Deadlock over UK’s Brexit bill: EU’s Michel Barnier


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP rose 0.24% against the USD and closed at 1.3261, after a newspaper reported that the European Union (EU) could offer Britain a two-year transitional Brexit deal.

Earlier in the session, the Pound declined against the USD, after the EU’s Chief Brexit negotiator, Michel Barnier, stated that negotiations on Brexit terms with the UK were at “deadlock”.

Separately, the Bank of England’s (BoE) credit conditions survey showed that British banks are planning the biggest cutback in unsecured credit in nearly 10 years over the next three months, following warnings that UK’s debt mountain has risen to dangerous levels. Further, it also showed that lenders reported that consumer credit availability to households decreased in the third quarter.

In the Asian session, at GMT0300, the pair is trading at 1.3276, with the GBP trading 0.11% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.3168, and a fall through could take it to the next support level of 1.3061. The pair is expected to find its first resistance at 1.3337, and a rise through could take it to the next resistance level of 1.3399.

Amid a lack of macroeconomic releases in the UK today, market participants will await the release of Britain’s inflation, ILO unemployment rate and retail sales data, all slated to release next week.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

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