GBPUSD Weekly Outlook Ahead of the UK Brexit Negotiations

The GBPUSD pair has been on the decline over the past few weeks. This is as a result of the rise in UK inflation and the Bank of England’s (BoE) decision on interest rates. The pair is now trading at 1.33ish which was a 3.68% decline from its highest level at 1.37949.

We highlight 3 main fundamental drivers for a possible downfall of GBPUSD
- Inflation rose above the 2% target
- UK post-Brexit / Ireland negotiations
- Strong US data, Jerome Powell kept as a FED chair

https://forexezy.com/gbpusd-weekly-outlook-ahead-of-the-uk-brexit-negotiations Learn more about fundamentals of this trade idea

The pair is moving below the 20-day and 50-day MAs, forming 1 level bearish signal. The relative strength index (RSI) is also below 50 and moving close to 30, confirming the signal at the 2 level.
The pair also appears to have formed an inverted cup and handle. This indicates a bearish continuation, and 3 level confirmation for our technical analysis.

Therefore, the pair will likely keep falling, so the next psychological level to watch is 1.30000, which has on several occasions been a support level for the pair.