GBP/USD analysis: breaking through 1.2400, but mid-range
|GBP/USD Current price: 1.2416
The GBP/USD pair erased half of its Monday's gains, as the Pound got hit by comments coming from Guy Verhofstadt, the chief Brexit negotiator for the European Union's parliament, who said that the UK must be completely severed from the EU before the next European Parliament elections, which take place in May 2019. That left a 14-15 months´ window for Brexit negotiations. A decline in crude oil prices also weighed on the Pound, with the commodity being subject of profit taking after rallying up to $49 a barrel. The pair traded as high as 1.2512, but was unable to hold on to gains, and broke below the 1.2400 figure ahead of Wall Street 's close. Still far above the 1.2330 critical support, the pair has a neutral stance in the short term, given that in the 4 hours chart, the price is holding above a horizontal 20 SMA, while the Momentum indicator has bounced from its 100 level, and heads north, opposing to the RSI indicator that turned south and is currently around 48. The pair seems to have found a new comfort zone within 1.2300 and 1.2600, with the longer term risk still towards the downside amid Brexit woes.
Support levels: 1.2395 1.2350 1.2310
Resistance levels: 1.2440 1.2485 1.2520
View Live Chart for the GBP/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.