BREAKING - GBP/USD Snaps Four Day Uptrend on EU's Fresh Brexit Proposals

• GBP/USD stands on slippery grounds after stepping back from the monthly high the previous day.
• EU leaders prepare no Brexit plans as several bloc leaders are frustrated with the negotiations.
• Virus woes, China news add burden on the risk catalysts.

GBP/USD dropped from 1.3264 to 1.3230 within a few minutes during Thursday’s Asian session. The Cable’s reaction was mainly to the Times headlines suggesting the European Union’s (EU) push for the no-deal preparations.

Read: Breaking: GBP/USD drops over 30 pips on no-deal Brexit noise

Although the recent updates concerning the Brexit talks have been positive, the piece cites the frustrations of several policymakers from Europe that will demand the European Commission to publish no-deal plans, per the news. Netherland, France and Belgium are among the top-tier push the bloc.

Other than the Brexit fears, the recent hike in the coronavirus (COVID-19) numbers from the US and Tokyo as well as global angst versus China’s stand in Hong Kong also weigh on the risks. That said, S&P 500 Futures print 0.20% intraday losses by press time.

It should also be noted that the hopes of vaccine and recently mixed data keeps the bears cautious amid a light calendar.

Technical analysis

A break below the upward sloping trend line from November 02, near 1.3220 now, becomes the key for the GBP/USD sellers while targeting a confluence of 100-bar SMA and the mid-November lows near 1.3105/3100 area.

Read: GBP/USD Price Analysis: Prints ascending triangle on 4H, 1.3310/15 guards immediate upside