21-hour SMA rescues bulls after Brexit news triggers a 40-pip drop

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  • GBP / USD stops a rapid decline near the support of the 21-hour SMA.
  • However, the bears continue to defend the 1.3300 level.
  • Recent Brexit news suggests the UK hasn’t moved on three key issues.

Having faced rejection once again below the 1.3300 level, GBP / USD has quickly lost 40 pips from the daily highs of 1.3287 after negative Brexit news.

The news quoted the EU negotiating team as saying there is no progress in the Brexit talks, as the UK has not changed its stance on fisheries, state aid and governance.

However, the 21 hour moving average at 1.3250 has offered support to the GBP / USD bulls, allowing a brief bounce to near the 1.3265 region at time of writing.

On the recovery from the daily lows of 1.3249, the bulls regain the 50 hourly SMA at 1.3257.

The RSI on the 1 hour chart, currently at 51.91, has turned higher, rebounding from the midline. RSI rally keeps buyers hopeful.

GBP / USD is now aiming to regain the 1.3300 level once again if the daily high at 1.3287 is successful. Higher up, the confluence of the November 11-18 highs at 1.3313 is the level to beat for the bulls.

If the recovery attempt loses steam, the 21-hour SMA support could be retested. Acceptance below that level could expose the support of the upward sloping 100 hourly SMA at 1.3241.

Further down, the support of the 200 hourly SMA at 1.3220 will be the critical barrier for the bulls to defend.

GBP / USD 1 hour chart

GBPUSD

 

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