- 14-day RSI is in bearish territory.
- Boris Johnson reaction to EU awaited.
- Symmetrical triangle breakdown on the anvil.
GBP/USD weakness from yesterday continues and trades near 1.2900 during the European session today. The sell-off started after the EU ultimatum to the UK PM Boris Johnson to reach a trade deal or to get ready for a no-deal Brexit.
The cable might continue the weakness as it awaits clarity from the UK PM on his stance on the issue, later today.
The technicals indicate a possible symmetrical triangle breakdown on the daily chart. Earlier, GBP/USD has faced rejection at the horizontal 50-daily moving average resistance around 1.3016.
The 14-day RSI is below the mid-point suggesting continued weakness. If the pair closes below 1.2885, a meeting point of rising trendline support and 21-DMA, it would confirm the triangle breakdown. If so, 100-DMA support at 1.2836 would be in play.
If the bulls regain the 50-day moving average, then bears might sidestep.
At 9:58 UTC time, the GBP to USD pair was seen trading up 0.29% at 1.2938.