GBP/USD Fails to Break the 200 SMA and heads Towards 1.30 Again
Skerdian Meta • 1 min read
GBP/USD turned bearish by the middle of last week and lost more than 200 pips from top to bottom. Although, the comments from British Prime Minister Theresa May that she was willing to let go one of her main demands regarding Brexit spiked the GBP and, as a result, this pair jumped 100 pips higher.
But, GBP/USD found solid resistance at the 200 SMA (purple) on the H4 chart. This moving average comes just below 1.31 and behind it, we can see the 100 simple MA (green) which added some more strength to that area.
The price pulled back lower, but the buyers had another go at the top side this morning. But, they failed once again and it seems like they gave up on the idea that they could reverse the trend for GBP/USD.
The Irish Foreign Minister declined the offer for an extended Brexit period today, as a temporary solution for the Irish border. The Irish don’t want a temporary solution, only to end up with a hard border in a year or two.
So, GBP/USD reversed down and it is heading for 1.30 now. This is a big round level and last Friday the price bounced off it. It remains to be seen whether 1.30 will hold again or get broken this time. We have the 50 SMA standing right at 1.30 on the daily chart, but if it gets broken, then we might open a sell signal with a stop above 1.3030.