GBP/USD Forecast: Choppy as Brexit still in limbo

GBP/USD Current price: 1.3341

• Brexit talks continue without progress as the clock ticks towards December 31.
• The November UK Manufacturing PMI is expected to be confirmed at 55.2.
• GBP/USD is technically neutral, waiting for some Brexit clarity.

The GBP/USD pair seesawed between gains and losses, ending the first day of the week with modest gains around 1.3340. The lack of progress on Brexit is affecting the bull’s determination, as the clock keeps ticking towards December 31 without any progress. This Monday, Irish Foreign Minister Simon Coveney warned that a trade deal between the UK and the EU would likely fail if there’s no agreement on fisheries, saying that is a more difficult issue than a level playing field. Meanwhile, the European Commission spokesperson said that whether there is a Brexit deal or not, people and businesses need to be prepared as things will change.

This Tuesday, Markit will publish the final reading of the November UK Manufacturing PMI, foreseen unchanged at 55.2.

GBP/USD short-term technical outlook

The GBP/USD pair is neutral, according to intraday technical readings. The 4-hour chart shows that it’s stuck around a flat 20 SMA while above a bullish 100 SMA. The Momentum indicator is crossing its midline into positive levels, while the RSI indicator is flat around 54. Speculative interest is on hold ahead of some Brexit clarity, with the pair expected to remain range-bound.

Support levels: 1.3320 1.3285 1.3240  

Resistance levels: 1.3410 1.3460 1.3495

View Live Chart for the GBP/USD