Forex Marketz Daily Forex News – Fully Markets Update
Looking at the benchmark GBP/USD currency exchange rate and above four (4) hour MT 4 price chart, the British pound (GBP) is consolidating gains around 1.3410 during the early Asian trade session on Wednesday.
The British pound has been unable to overcome the key upside barrier lining up at 1.3430 as it has challenged this barrier several times over the last several hours and failed.
Right now it is all about the free trade negotiations between the United Kingdom and the European Union. We are coming down to the wire as the United Kingdom will finalize the divorce agreement with the Eurozone on 31 December with or without a trade deal.
The latest news is that there is still a very good chance for a messy Brexit without a trade deal in place. There are significant gaps still remaining over fishing, governance rules and dispute resolution.
At stake, in just under thirty days, is a trade deal worth about $1 trillion. Each side is urging the other to compromise and both sides have dug their heels in. A senior French official has said that London must make clear the position of the United Kingdom and “really negotiate.”
The French have warned that Brussels will not accept a “substandard deal.” The European Union remains hopeful of a deal over the coming days and their chief negotiator, Michel Barnier, is scheduled to update the 27 member trade bloc today at 0730 GMT.
Daily British Pound Technical Analysis (GBP/USD)
Looking at price action, the British pound’s inability to stay above 1.3430 is a signal that this headline Forex market is losing some of its bullish momentum. The GBP/USD Forex market is starting to consolidate on the above four hour chart.
The first layer of technical resistance lines up at 1.3398 with the key level of 1.3430 in play just above. A daily close above 1.3430 will likely open the door to challenge the next upside barrier, which is the 1 September high price point, at 1.3483.
With that said, while below 1.3398, the bears are looking to challenge the 27 November low price point. This downside barrier is in play at 1.3285.
