GBP/USD Outlook (06 February 2020)

Overall, GBP/USD is moving across. Recently, GBP/USD plunged into the support level of 1.29900 after Bloomberg reported that “officials in Berlin, Brussels and Paris are looking to amend the post-crisis financial rulebook known as MiFID II by walking away from concessions they made to the U.K. in the six years it took to complete the regulations”. The amendment of the MiFID II could make Brexit negotiation more challenging for international banks.
The U.K. final services PMI data (Actual: 53.9, Forecast: 52.9, Previous: 52.9) released yesterday was better than forecasted and GBP strengthened.
Currently, GBP/USD is testing the support level of 1.29900 and the next resistance level is at 1.31800.
Look for selling opportunities of GBP/USD if it breaks the support level of 1.29900.