GBP/USD: UK Prime Minister Theresa May warns on risks of a No-deal Brexit


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 0.54% against the USD and closed at 1.2741.

In economic news, UK’s CBI distributive trade survey’s retail sales balance climbed to 19.00 in November, higher than market consensus for a rise to 10.00. The retail sales balance had registered a reading of 5.00 in the prior month.

In other major news, UK Prime Minister Theresa May highlighted the possibilities of Britain leaving European Union without a deal or no Brexit at all if the drafted deal would fall short of the desired number of votes in the Parliament. Besides, the EU’s top court would pass a ‘quick’ decision over the unilateral reversal of UK leaving the EU, leading to a second referendum and eventually halt Brexit

In the Asian session, at GMT0400, the pair is trading at 1.2742, with the GBP trading marginally higher against the USD from yesterday’s close.

The pair is expected to find support at 1.2705, and a fall through could take it to the next support level of 1.2667. The pair is expected to find its first resistance at 1.2800, and a rise through could take it to the next resistance level of 1.2857.

Looking ahead, the Bank of England Governor, Mark Carney is scheduled to hold a press conference later in the day, following release of the central bank’s financial stability report and stress tests results.

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

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