'Gloomy' Brexit Negotiations Become GBP / USD Declining Factor

 The Pound Sterling also showed a downtrend after the risk returned to overshadowing Brexit negotiations between the European Union (EU) and the United Kingdom (UK).


Reports indicate the EU has no plans to offer concessions to the UK with a deadline set by Prime Minister Boris Johnson of October 15.


The EU is ready to extend the negotiation period until mid-November and is ready for the risk of a no-deal rather than a non-partisan demand.


On the chart of the GBP / USD currency pair, it can be seen that the price which reached the level of 1.3000 moved horizontally in the resistance before the downtrend.


With the strengthening of the US dollar following a shocking statement by US President Donald Trump on the implementation of the economic stimulus package, the price on the GBP / USD chart has shown a daily decline of around 140 pips to the level of 1.28700.


A drop below the Moving Average 50 (MA50) barrier at the 1 hour price movement also signals a change in the bearish trend.


The price decline is expected to be lower towards the RBS zone (resistance become support) 1.27600.


A lower decline will lead to the support zone at 1.26700-1.26400 if sentiment remains unchanged.



On the other hand, if the price moves back above the 1.29000 level, the MA50 barrier will be tested before a higher rise will re-test the resistance level of 1.30000.


A higher rise above the resistance will record the latest possible high level towards the resistance zone 1.32000.