GBP/USD testing the upside again, needs to break 1.3180

• GBP/USD to suffer at the hands of further deadlock Brexit?
• GBP/USD struggles technically.

GBP/USD is consolidating above the 1.3120 level where the 50 hourly SMA is located at 1.3118. There are no headlines for sterling today, but the BoE and Brexit sentiments will continue to hinder bullish attempts. The BoE recently hiked rates but the outlook is dovish and the "one-and-done" scenario exposes the downside in the pound while Brexit negotiations are still very much in the air under what many proclaim to be weak leadership. 

GBP/USD's main focus this week? - Scotiabank

GBP/USD finding tough resistance at MA cluster

In stark contrast, the Fed is on the path of hiking rates again as soon as December and again in 2018. The dollar continues its advances and broke the 95 level in the DXY. Sterling was unable to get through the cluster of MA's that included the 100-hour / 200-hour moving average, and the 100-hour moving average on the 4- hour chart, all at around the 50% of the move down from the 1.33 level, 1.3180.

GBP/USD levels

"We are unable to rule out a deeper retracement to 1.3250 ahead of further failure. It represents the breakdown point to 1.2830/1.2774, the 38.2% retracement and August low, and the 1.2575 50% retracement," argued analysts at Commerzbank. 

Meanwhile, analysts at Scotiabank explained, "The sharp drop in the pound late last week left a large gap on the hourly charts between 1.3150/1.32 and gains through late yesterday and into the overnight session have moved to fill (largely) that gap which now serves as strong resistance. The turn lower in the pound from the high 1.31s suggests Cable remains at risk of a push under 1.31 following last week’s low close."