GBPUSD - Downside Likely To Persist

FX:GBPUSD   British Pound / U.S. Dollar
Hi Traders,

GBPUSD broke out of the upside trend line and the move down has stalled within previous structure.

Price now must close below 1.122000 to confirm further downward bias.

With the Supreme Court ruling on if the British Parliment must vote on a deal to leave the EU due mid-Jan we may see price trade sideways until the verdict is delivered.

The verdict is highly expected to support Parliment needing to approve a deal to leave the EU which is expected to support Sterling, markets may 'buy the rumour' before a verdict so if price continues to stall at 1.22000 we'd be inclined to take a long position. Until we see more bias from market participants we remain neutral.