The pound sterling advanced to a two-month high intraday on Friday before pulling back. The knee-jerk reaction came as traders repriced the Brexit talks. Remarks by EU President Jean-Claude Juncker about a quick Brexit deal before October 31st saw the markets reacting strongly. But a lack of any follow-through or supportive remarks from Brussels saw the GBPUSD easing back to close lower on the day.
GBPUSD Could Correct Lower
Following the rally to the resistance area of 1.2533 and 1.2511, the currency pair pushed lower. This saw prices falling out of the ascending wedge pattern. The near-term outlook for GBPUSD remains to the downside. The weekly chart shows prices closing with a doji. This indicates a possible move to the downside if we see a lower close on the daily chart. The support area of 1.2370 will be the ideal price area to which the GBPUSD will correct.
