EU & UK reach Brexit deal, 'sell the fact' in GBP/USD?

• EU & UK reach Brexit deal.
• Talks to enter the second stage.
• GBP offered on confirmation of the Brexit deal.

GBP/USD surrendered gains after news hit the wires that the Europen Union and the UK have reached the historic Brexit deal. The EU said it is ready to begin work on the second stage - Brexit transition after Summitt.

The decline in the GBP/USD pair on the news indicates the markets had already factored-in a Brexit deal. Essentially, what we are seeing now could be a "sell the fact" trade.

Cable may continue to lose altitude as investors take profits on the longs initiated in hope of Brexit deal. Also, comments from UK's May and EU's Juncker could influence the pair. Traders also need to keep an eye on the UK data releases (manufacturing production and trade data). The USD may strengthen if the US wage growth numbers, due later today, beat estimates.

GBP/USD Technical Levels

A move below 1.3431 (10-day MA) could yield a sell-off to 1.3320 (previous day's low), under which a major support is seen at 1.3243 (50-day MA). On the other hand, a close above 1.3520 (session high) would add credence yesterday's bullish engulfing candle and shall open doors for 1.3596 (Sep. 22 high) and 1.3657 (Sep. 20 high).