The Pound is under pressure. The issue of payments and the Irish border is still in process.

The British pound declined against the US dollar in today’s trading, due to the overall strengthening of the US currency, and against the backdrop of continued uncertainty about the future of trade relations between the UK and the EU.

The EU and the UK still have not reached an agreement on payments for Brexit and the Irish border, which does not allow to negotiate on the free trade during the transition period. For more information, see Bloomberg.

Technical analysis: On the H1 chart of the pair GBP/USD, the figure “head and shoulders” was formed, which has already begun its development, as a result of which the price of the instrument is trying to consolidate below the support line of the rising channel on H1. This indicates a possible reversal of the short-term trend. The nearest level of support is at the 1.3270. In case of further price reduction and its consolidation below the level of 1.3270, one should expect further price reduction to the area of ​​1.3220-1.3200.

Fig. The GBP/USD graph, current price – 1.3296.

Alexander Sivtsov