GBPUSD at Risk of Further Decline Towards the Doorstep of 1.3000 Level As Brexit Saga Continues

GBPUSD Price Analysis – December 13

GBPUSD continued weakness under the 1.3260 level may see the pair being sold towards the 1.3000 level. A nerve-wracking weekend concludes with growing fears Brexit talks could collapse. The Brexit saga lives on, promising a high dose of action.

Key Levels
Resistance Levels: 1.3700,1.3514, 1.3313
Support Levels: 1.3200, 1.3000, 1.2813
GBPUSD Long term Trend: Ranging
As seen in the daily chart, GBPUSD retraced beyond 1.3200 low after hitting a fresh 1-month low of 1.3134. The pair bounced before the low and consolidated in the 1.3223 price zone. GBPUSD is poised to continue its decline as it broke below its 5 and 13 moving averages and approached the ascending trend line that provides support at 1.3106.

In a broader context, attention remains at the key resistance level of 1.3514. Continued trading above 1.3313 could also be a decisive breakout. This may validate the medium to long term bottom at 1.1409. The trend may change to bullish towards the resistance level of 1.3700 and above. Nonetheless, a deviation at 1.3514 could keep medium-term bearish sentiment for another dip below 1.1409.
GBPUSD Short term Trend: Ranging
GBPUSD fell to 1.3134 in the previous session as the decline continues from 1.3539. Further falls are considered this week until minor resistance level 1.3313 is broken. The RSI has crossed their midlines into oversold territory, maintaining its bearish slopes.

A persistent violation of the moving average 13 by the moving average 5 at 1.3225 should confirm another deviation from the key resistance zone of 1.3514. A steeper drop can be seen back to the 1.2675 support level. On the other hand, minor resistance below 1.3313 may change the intraday bias first.

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