The Pound sterling took a hit this morning after the meeting between UK Prime Minister Theresa May and European Commission President Jean Claude Junker failed to reach an agreement on Brexit.

The Pound sterling took a hit this morning after the meeting between UK Prime Minister Theresa May and European Commission President Jean Claude Junker failed to reach an agreement on Brexit.

 

After a high at $1.3541 yesterday, the Pound slumped to as low as $1.3373 this morning, losing almost 160 pips in the aftermath of the deadlock!

 

Technical Outlook.

 

The price pattern on the hourly chart showed that the corrective move that started early in October may have ended at $1.3541 yesterday, leaving the door open for extra downside in the next few days/weeks. Based on the bearish price pattern, we would aim for a test of $1.3156 in the short term followed by $1.2915. On the other hand, the immediate up barrier aligns at $1.3481 and finally at $1.3541.

 

 

 

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