The British Pound breaks below 1.2800 as risks of a “no deal” Brexit continue to grow driving investors away from the currency. Even after this month’s EU council summit, the EU and the UK failed to finalize an agreement on Brexit keeping in mind that both sides went into the summit with intentions to strike a deal. The dire outcome of the summit showed investors how much the Brexit negotiations are complicated sparking a series of Pound sell offs. Along with Brexit fundamentals, Pound traders need to also monitor the movement of the US Dollar as it may be impacted by the US Consumer Confidence figure, set to be released later today.
The pair broke the 1.2792 support level representing a continuation in the downtrend and exposing the next support level at 1.2730. Based on the chart below, the pair is clearly in a bearish trend as all moving averages point lower and prices constantly reject the break above the 13-period moving average. The trend reversal will only take place if prices break above the 13-period moving average, but for now, the trend bias is bearish.
Support: 1.2792 / 1.2730
Resistance: 1.2840 / 1.2921