Technical Analysis – GBP/USD 12/1/2017
By Antonis Vasloos
The GBP/USD plunged more than 1% in thin Asian trade on Monday, as investors reacted to fresh headlines signaling the British government is planning for a “hard Brexit” from the European Union. The GBP/USD briefly fell below the psychological level of 1.2000 before consolidating at 1.2024, having declined 1.3%. Currency traders can brace for more Brexit-inspired volatility this week as markets await the Supreme Court’s ruling on Article 50.
The pound has opened the week near oversold levels on the Relative Strength Index, a region that has become synonymous with the currency since the June 23 Brexit vote. The GBP/USD has declined a staggering 19% since the landmark referendum.
- Support (daily): 1.2006, 1.1973, 1.1951
- Resistance (daily): 1.2061, 1.2083, 1.2116