British Pound Weekly Technical Forecast: Sterling Seeks Further Brexit News

Talking Points:

  • The British Pound traded lower this week after Prime Minister Theresa May’s Cabinet saw a string of resignations over a proposed Brexit deal text
  • A weakened Dollar may prove bullish for GBP/USD
  • Brexit will remain the key driver behind Sterling’s performance in the week ahead

Technical Forecast for the British Pound: Neutral

The British Pound fell under significant pressure last week as hopes of a ‘soft Brexit’ were slashed. After Prime Minister Theresa May proposed a draft text of her Brexit deal, ministers voiced concern and May saw a string of resignations including Brexit Secretary Dominic Raab. The developments sent Sterling considerably lower across all pairs.

GBP/USD Price Chart: Daily Timeframe (April 2018 to November 2018) (Chart 1)

British Pound Weekly Technical Forecast: Sterling Seeks Further Brexit News

After a minor rebound on Friday, GBP/USD closed roughly -1.10% lower last week. The Brexit breakdown sent the pair near the bottom of the Fibonacci sequence originating in April. Coupled with the resistance trend-line from July, the successively lower lows in August, October and now November have begun to form a descending triangle. Further downside tests are

Article source: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2018/11/16/Sterling-Seeks-Further-Brexit-News.html