​Sterling May Decline amid Emergency Brexit Talks

WikiFX News (11 Sept.) - Recently, GBP/USD starts stabilizing around the key psychological level of 1.30 after dropping from a high above 1.34 earlier this month. However, the fact that the UK will exit Brexit transition next year has increasingly become a major factor affecting the fundamentals of the sterling. Todays market will focus on emergency Brexit talks between the EU and the UK, which may lead to further decline of the sterling in future tradings.

According to the daily chart, GBP/USD has recovered to the late-July level, but obtained little support ahead of the 100-day moving average at 1.2751, and the 14-day RSI has not yet showed an oversold signal.

The UK government has proposed a law to override parts of the Brexit withdrawal agreement and admitted that the legislation would breach international law, which raise serious concerns from the EU.

Such action triggered emergency talks in London between European Commission Vice-President and UK Cabinet Office minister, despite of the ongoing negotiations between the two parties. The result of these talks will determine the trend of GBP/USD in the period ahead of UKs GDP data for July, which will be released this afternoon.

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GBP/USD Daily Chart