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GBPUSD prints bullish flag as EU-UK jostle over Brexit

Long
FX:GBPUSD   British Pound / U.S. Dollar
GBPUSD buyers await for Brexit headlines as the Cable gyrates inside a bullish flag chart pattern on the four-hour play. The European Union (EU) diplomats aren’t likely to get a warm welcome in London on their arrival for Brexit talks. The reason could be linked to the comments from UK’s Brexit policymaker David Frost, conveying his discomfort with the bloc proposal for NI border. However, the Fed tapering concerns remain elevated ahead of Thursday’s US Q3 GDP and underpin the US dollar’s safe-haven demand. Hence, the quote is likely to remain firmer but further upside needs a clear break of 1.3815 hurdle. The same will confirm the bullish chart pattern, directing the pair further towards the 1.400 psychological magnet. During the rally, September’s peak of 1.3912 may probe the bulls.

Alternatively, the monthly support line near 1.3750 offers immediate support to the GBPUSD prices during the pullback, ahead of the stated flag’s support line near 1.3725. Should the quote remains weak past 1.3725, the 1.3700 round figure and 200-SMA level near 1.3685 may probe the bears before directing them towards the monthly low of 1.3430. Overall, GBPUSD bulls keep the reins ahead of important Brexit talks.