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Sep 26 - 03:48 PM
GBP/USD - COMMENT-Brexit Quagmire Saps GBP/USD Bullish Vigor
First appeared on eFXplus on Sep 26 - 01:30 PM

GBP/USD has steadied at 1.2345, above today's 2-week low by 1.2303.
Despite a rise to 1.2366 near the London fix, the pair remains offered as lingering UK political and Brexit uncertainties have sapped any latent bullish potential in the aftermath of parliament passing legislation to avoid a no-deal Brexit.
With little momentum toward a deal, recent GBP/USD bulls are lightening positions as PM Johnson continues to tout the UK's exit from the EU on October 31, despite no progress on a revised deal with the EU.
Fueling the reduction in bullish sentiment are reports of various scenarios where PM Johnson may be able to exit the EU on October 31 circumventing recent parliamentary legislation nL3N26H3C1.
Therefore, today's support levels by the 30-DMA at 1.2302 and 55-DMA at 1.2291 may prove to be just speed bumps if bears once again take aim at the daily cloud base by 1.2215.
With little momentum toward a deal, to rekindle GBP/USD bullish fires, the September 20 high by 1.2582 and 50% Fibo of 2019's range at 1.2670 should cap the market.
Additionally, if GBP traders take PM Johnson at his word, growing hard-Brexit sentiment likely puts the 2019 low at 1.1959 in the crosshairs.

GBP Chart: Click here

Refinitiv IFR Research/Market Commentary


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