Brexit negotiations are still be held up by fisheries
The GBPUSD is moving to a new session lows. Recent comments from an EU diplomats suggest that negotiations are still ongoing regarding fisheries. There are other chatter about a deal getting close. So be aware.
Technically, the price is moving away from the 200 hour moving average and 50% retracement of the range since last Thursday's high. That level comes in at 1.34052. The price has traded above and below that area earlier in the Asian and London morning session. This is the latest attempt and is leading to new session lows. A move back above that dual level would tilt the bias more in the bullish direction with the 100 hour MA at 1.3469 as teh next key upside hurdle.
The next target on the downside would come between 1.3283 and 1.32913. That is home to a number of swing levels going back to earlier this month (and even before then).
Admittedly, there have been attempts to move below that area (see red shaded areas), but after the breaks below, the price action ended up basing against the swing area and moving higher.
Yesterday was the last attempt to move below that swing area. The wild swings yesterday first saw the pair tumble below the swing area on its way to a low at 1.31868. That was followed by an even stronger surge to the upside that saw the pair move around 310 pips back higher. Before making the big run, the pair based against the swing area (see red number circle 11).
Should Brexit negotiations break down, I would expect that area to be a key barometer for the bulls/bears from a technical perspective.
For now, the bias is tilting to the downside below the moving averages and 50% retracement. Stay below keeps them more in control.
