GBP/USD analysis: at fresh three-month lows and bearish
|GBP/USD Current Price: 1.2844
- A stalemate Brexit continues pressuring Sterling against all major rivals.
- USD stronger despite some positive news regarding car tariffs.
The GBP/USD pair fell to 1.2825, its lowest since last February, amid a combination of dismal market mood and Brexit-related headlines. Concerns about global economic growth got triggered by softer-than-expected Chinese data, adding to persistent US-Sino tensions. The Sterling, meanwhile, was negatively affected by comments coming from Labour's spokesman, who said that gaps remained between the Labour Party and the government. PM May, on the other hand, plans to pass her Brexit deal through the Parliament in the first week of June, still struggling to build a majority. Clearly, the market doesn't believe she will succeed in this new attempt, without giving up some of her red-lines, something she clearly won't do. The UK didn't release relevant data this Wednesday, and the kingdom's macroeconomic calendar will remain empty also Thursday.
The pair bounced just modestly on risk-positive news, now heading into the Asian opening trading in the 1.2860 region, and short-term bearish, despite oversold according to intraday technical readings. The GBP/USD pair is being unable to recover beyond the April low at around 1.2850, now an immediate resistance, while, in the 4 hours chart, the price collapsed below a bearish 20 SMA, while technical indicators maintain their bearish slopes, the Momentum extending its decline and the RSI resuming it, both well into oversold territory. February low at 1.2772 comes as the next possible bearish target, with a break below it opening doors for a downward extension toward the 1.2500 figure.
Support levels: 1.2825 1.2770 1.2730
Resistance levels: 1.2865 1.2905 1.2940
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