FxWirePro: GBP/USD bearish again as upside bias reverses
GBP/USD declined on Tuesday as the pound came under selling pressure ahead of Britain's formal launch of negotiations on leaving the European Union. British Prime Minister Theresa May will trigger Article 50 of the EU's …
GBP/USD declined on Tuesday as the pound came under selling pressure ahead of Britain's formal launch of negotiations on leaving the European Union.
British Prime Minister Theresa May will trigger Article 50 of the EU's Lisbon Treaty with a formal notification of Britain's intent to leave the bloc on Wednesday, kicking off a two-year period of exit talks.
Investors' main fear is that a "hard" Brexit one in which Britain would lose preferential access with its largest trading partner would damage the British economy, which is showing signs of faltering.
Worries are also growing that Britain's exit negotiations could be tough and protracted, as both Theresa May and European leaders take bold opening stances.
The currency pair is trading around 1.2512 levels and it is set to decline towards 1.2450 and 1.2400 in the short term.
To the upside, immediate resistance can be seen at 1.2602, a break above this level would expose the cable to next resistance level at 1.2672.
To the downside, immediate support can be seen at 1.2496 a break below at this level will open the door towards next level at 1.2431.
