Brexit deadlock and the strength of the dollar index is keeping the pressure on the sterling-dollar pair.
In the currency market, the dollar index is on the surge again and it traded mostly near enough to its one week high yesterday. We expect this momentum to continue as investors seek safe haven in the green back. The two currency pairs which do stand in a prominent position are Canadian dollar and the British dollar. The strength of the dollar index is more prominent here and this is because both currencies have some serious issues going on; in Canada, it is about the trade agreement with the US and over in Britain, it is the rollercoaster Brexit ride. It seems like no deal may be a scenario which has more odds stack in its favour.
GBP/USD- facing more downward pressure
The chart below on a dily time frame shows that the price failed to break above the 50-day moving average (showin in green). This confirms that the bears are in more control of the price and the further confirmation of the downward trend comes from the fact that the price is trading below the downward trend line. In order for us to have any kind of confirmation that the downward trend may be changing, we need to see the price to break above the 50-day moving average.
