The British government plans to present a detailed proposal this week to break the Brexit deadlock, on the back of a Tory party conference.
Expectations are for the new plan to set out a solution on the Irish backstop which has become the main point of disagreement.
GBP/USD Likely to Break the Support
The currency pair remains bearish as it broke past the initial support area of 1.2370. This comes following the downside breakout from the rising wedge pattern.
The bearish momentum, however, pushed GBPUSD down to the next support area of 1.2291. If this support breaks, then we expect to see sharper declines. The next main support is seen at 1.2082.
