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GBP/USD falters at 61.8% retracement
GBP/USD has been gaining ground as markets digest the potential culmination of Brexit talks which have produced a proposal for parliament and EU member states to consider. There is undoubtedly a chance that this could be the beginning of a wider recovery if the agreement was voted through.
However, it is worthwhile noting that there is a very strong chance that it will be rejected, leaving talks in limbo. This possibility is worth considering as it could provide a substantial downward move for sterling. With that in mind, we need to see a break through $1.3167 to provide confidence that markets are willing to run with the bullish side of the story. Until then, there is a chance the sceptics among us will drive GBP/USD lower. Only upon seeing a positive resolution from the UK parliament and EU nations would it seem sensible to gain a more bullish long-term view for sterling.