GBP/USD Still Sliding Lower as Brexit Talks Continue

GBP price, Brexit news and analysis:

  • GBP/USD continues to slide modestly lower as the EU-UK talks on a trade deal once the Brexit transition period ends keep going.
  • However, no progress is likely before the US elections next Tuesday so GBP/USD could yet move lower still.

GBP/USD slide persists

The recent trend lower in GBP/USD persists, and there could yet be further modest falls, although support remains close to the 1.30 level.

GBP/USD Price Chart, One-Hour Timeframe (October 20-27, 2020)

Chart by IG (You can click on it for a larger image)

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For GBP/USD, the next big move is likely to be prompted by any signs of progress – or the lack of it – in the talks between the EU and the UK on their relationship once the Brexit transition period ends on December 31.

For now, hopes are high that a deal, albeit a very sketchy deal, can be reached eventually but nothing is likely before next Tuesday’s US elections.

In the meantime, GBP/USD will likely be buffeted by the rise in coronavirus cases in the US and Europe, and the lack of an agreement on a US stimulus package, although Nancy Pelosi, the speaker of the US House of Representatives, says she remains hopeful.

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Oct 27

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— Written by Martin Essex, Analyst

Feel free to contact me on Twitter @MartinSEssex

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