GBP/USD is struggling to close the gap and bears are attempting a break to the downside again below the 1.2160 mark currently.
The major currency that has been taking most of the attention in markets of late has opened another Asian session heavily on the offer in a bearish gap on 32 pips. The bulls attempted to close the gap but have been rejected twice and bears are back in control.
The weekend's news had European leaders discussing Brexit. French President Francois Hollande speaking again over Brexit and the EU, affirming that negotiations need to be seen to the end, " … while maintaining the principles of the European Union, notably that of free movement."
German Chancellor Merkel was also speaking and said the UK could not get concessions on freedom of movement while retaining full access to the European single market which is also weighing on the pound today. For the week ahead, corporate earning in the US along with The final Presidential debate should be the focus while CPI and Fed speakers are also due.
GBP/USD is better offered while below 1.23 and the pair and the major is moving further below the 20 sma on the 1hr sticks at 1.2193 the figure. "We continue to see significant technical hurdles to a sustained GBP rally at this point – specifically the strong, bearish alignment of trend strength oscillators which suggest ongoing downside risks and limited scope for GBP gains nearterm," explained analysts at Scotiabank. On the wide, analysts at Commerzbank explained that we have a resistance line at 1.2947 and they consider that the market remains directly offered below the 1.3056 late September high. "Below 1.1938 we would target the 1.0463 1985 low."