- Pound to US dollar (GBP/USD) is attempting to rebound from a 6 week nadir
- Decline sparked by rectangle breakdown on 15-minutes chart
- Rebound could struggle at 1.2955.
GBP/USD is trying to rebound from 6 week nadir at 1.2920, however Brexit risks and greenback demand could cap the bounce
The UK government’s internal market bill due to be released later today could also keep the bulls in check.
According to Sky News, the bill addresses how trade between England, Northern Ireland, Scotland and Wales will remain barrier-free post Brexit from 31 December 2020..
Looking at the technicals, a rectangle breakdown on the 15-minutes chart saw the target 1.2929 achieved. The selloff continued reaching six-week lows at 1.2920.
The price then rebound with resistance seen at 1.2955, the confluence of the pattern support and 21-Simple Moving Average (SMA).
Beyond here, resistance can be seen at 50-SMA of 1.2965.
The Relative Strength Index (RSI) on the said time frame has moved out of oversold territory but remains in the bearish zone at 38.45.