GBP/USD analysis: dollar´s weakness leads the way higher
|GBP/USD Current price: 1.3214
- Brexit negotiations still at a deadlock.
- UK data beat expectations, but at pre-Brexit levels, reflecting concerns.
The British Pound closed the week with gains against the greenback a handful of pips above the 1.3200 level, more on persistent dollar's weakness than on self-strength. UK data released this last few days beat market's expectations, but was overall worrisome, as employment posted the biggest drop in over two years, while retail sales fell yearly basis for the first time since 2013, clearly reflecting concerns over the post-Brexit economic future. On Brexit negotiations, another week went through with no progress. EU authorities don't believe sufficient progress will be made by December to move to the next phase, while UK PM May hopes the contrary. A final version of UK Q3 GDP will be released this week. The daily chart shows that the pair is at the upper end of these last weeks' range, but still technically neutral according to the daily chart, as the price established above a flat 20 DMA, while technical indicators remain around their mid-lines, with limited upward strength. In the 4 hours chart, the pair is biased higher, with the 20 SMA crossing above the 200 EMA below the current level, as technical indicators bounced after nearing their mid-lines, with a modest bullish slope ahead of the weekly opening. The price is near the 1.3220/30 region, an immediate short-term resistance, but a stronger one is located at 1.3259, the high set last week.
Support levels: 1.3195 1.3160 1.3130
Resistance levels: 1.3225 1.3260 1.3300
View Live Chart for the GBP/USD
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