GBP/USD Forecast: New four-month lows as May plots her fourth attempt to pass Brexit
The saying “third time’s a charm” did not apply to UK PM Theresa May’s Brexit deal, but perhaps her fourth attempt may succeed. At least that is what she hopes, but chances are low and the pound remains depressed, hitting new four-month lows close to 1.2700.
Outside Brexit-land, the US-Sino trade-related tensions have heightened as China remains defiant in the wake of America’s ban on Huawei, the Chinese telecom giant. While the administration has granted a temporary license to the firm, many worry about a “tech cold war.”
If GBP/USD loses this week’s lows around 1.2700, the next support line is 1.2670, Further down, 1.2610.
Looking up, some resistance awaits at 1.2780 that held the currency pair down on Monday
Long above 1.2670 with target 1.2780 &1.2830 in extension
Short below 1.2670 with 1.2610 as a target
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