GBPUSD Forecast And Technical Analysis: 1.30600 Support

Fundamentals:

GBPUSD sold off driven by signals that Brexit talks stalled. UK PM May said: No deal is better than a bad deal. May also said that the UK will continue preparations for the scenario on no-deal Brexit.
FED’s rate hike decision and FOMC meeting on Wednesday. A Fed’s hike is priced in, hints on December’s action will be critical.
Technical Indicators:

On the weekly chart, Cable rejected EMA 50 at 1.33000 and ended the week below SMA 20.

On the daily chart the pair closed just above the EMA 50 support in the upper Bollinger Bands.RSI headed south.

On the H4 Chart, the price is below EMA 50. MM 6/8 Pivot Major Reverse line is located at 1.30600.

Intraday Key Levels:

Upside: 1.31200 1.31750 1.32444

Downside: 1.30610 1.30200 ( SMA 100 Support ) 1.30000 1.29470

Chart Patterns: As seen on the chart we have a bullish new Cypher Pattern. Area of long entry 1.30600 – 1.30400. Targets of the pattern 1.30980 and 1.31400.

Our Comments: Nowadays; intraday trading Sterling pairs is like carrying a bomb in your pocket due to Brexit related news. If the pair makes convincing closing below 1.30600, the bearish pressure will continue and by the breakout of SMA 100 support at 1.30200, Cable is likely to test 1.29450 MM 4/8 Major Support on H4 Chart.

A firm closing above 1.30600 will lead the price 1.31200 and 1.31700.

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