BoJo and Brexit are back

U.K. Prime Minister Boris Johnson will return to work today after suffering from the coronavirus. He already warned that Post-Brexit trade talks with EU are on course to fail. On the E.U. side, chief negotiator Michel Barnier accused the U.K. of not engaging with key issues of particular importance to the EU. On Friday, U.K. retail sales sank 5.1% on month in March (-5.0% estimated), the sharpest decline since 1996.

From a technical point of view, on a daily chart, GBP/USD stands below its strong horizontal resistance at 1.2745 and remains capped by its declining 50-day moving average (in blue). The daily RSI stands within its selling area between 50 and 30. Readers may therefore consider the potential for further weakness below horizontal resistance at 1.2745. The nearest support would be set at Apr. 7 bottom at 1.2160 and a second one would be set at set at horizontal support at 1.1950 in extension.

Source: TradingView, GAIN Capital

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