GBP/USD analysis: caution ahead of 1.3000
|GBP/USD Current price: 1.2949
The Pound managed to extend its rally to a fresh 7-month high of 1.2964 against its American rival, despite a weak UK Q1 GDP reading. The economy in the kingdom grew by just 0.3% according to preliminary estimates, hurt by the sharp advance in inflation triggered by the Brexit decision. Minor figures were released all through the week, still indicating some degree of resilience, although starting to dent confidence in the future developments. The pair closed the week at 1.2950, with market players eyeing the major psychological barrier at 1.3000, where large buying interest is expected to surge, at least on a first attempt of breaking higher. The pair retains its bullish technical stance according to the daily chart, as the price advanced far above its moving averages, whilst the RSI indicator heads north around 74 and the Momentum indicator consolidates near overbought readings. Still, unless the 1.3000 region is clearly broken, caution is recommended at current levels. According to the 4 hours chart, the risk is also towards the upside, as the 20 SMA maintains its bullish slope, currently around 1.2880, while technical indicators have partially lows upward strength, but hold near overbought levels.
Support levels: 1.2880 1.2830 1.2795
Resistance levels: 1.2965 1.3010 1.3060
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.