GBP/USD Price Analysis: Teasing a triangle breakdown, eyes on PM Johnson’s Brexit decision

• 50-DMA is the level to beat for the GBP/USD bulls.
• The cable teasing a symmetrical triangle breakdown on the daily chart.
• UK PM Johnson to decide Brexit fate on Friday

GBP/USD wallows in lows below 1.2900 in European trading this Friday, extending Thursday’s sell-off after the European Union (EU) gave an ultimatum to the UK PM Boris Johnson to agree on concessions and reach a trade deal or get ready for a no-deal Brexit.

The risk appears to the downside for the cable, as PM Johnson will decide on the Brexit fate, setting out his approach later on Friday.

From a near-term technical perspective, the spot is on the verge of a symmetrical triangle breakdown on the daily chart following a rejection at the horizontal 50-daily moving average (DMA) resistance, now at 1.3016 a day before.

The 14-day Relative Strength Index (RSI) has pierced below the midline, suggesting that the additional downside remains on the cards.

A daily close below the powerful support at 1.2885, the confluence of the rising trendline support and 21-DMA, would confirm the triangle breakdown.

Subsequently, the bullish 100-DMA support at 1.2836 could be challenged.

Meanwhile, recapturing the 50-DMA barrier is critical to negate the bearish momentum.

GBP/USD: Daily chart

GBP/USD: Additional levels