GBP/USD: Weakness while no outcome on Brexit deal – OCBC

The GBP/USD lifted higher towards 1.2600 on the back of Brexit optimism, before easing when no concrete deal proved to be forthcoming. With there being no outcome on the Brexit talks, analysts at OCBC Bank do not rule out some softness for the cable for now.

Key quotes

“The market bet on a Brexit compromise deal, lifting the cable higher towards 1.2600. Nevertheless, no deal was forthcoming, and the GBP/USD pair subsequently retraced lower.”

“Short-term implied valuations remain pointed south. For now, any upward extension will have to breach 1.2600, before targeting the 200-day MA (1.2696).”