GBP/USD analysis: piercing 1.3100 on dollar's strength
|GBP/USD Current price: 1.3094
- EU's Barnier working on a "close economic relationship."
- UK Q2 GDP to be out this Friday, expected to show a 0.4% QoQ growth.
Pound longs finally gave up to dollar's strength, and the GBP/USD pair broke below the 1.3100 level. The GBP/USD pair peaked for the day at 1.3162, following some encouraging Brexit-related comments, as EU's Chief Negotiator Barnier tweeted: “The EU continues to work for an orderly Brexit and an ambitious future partnership with the UK that should include a close economic relationship,” although BOE's chief economist Andy Haldane said that Brexit worries are up, with uncertainty following suit, amid the ongoing uncertainty. There were no macroeconomic releases in the UK, but this Friday will offer final Q2 GDP expected to show a quarterly growth of 0.4%.
The GBP/USD pair retreated sharply after failing to regain ground beyond 1.3170, a major Fibonacci resistance, and now trades below its 20 SMA, which lost its upward strength. Furthermore, technical indicators have entered negative territory, heading into the Asian session with strong downward slopes, anticipating some additional declines ahead, particularly on a break below 1.3055, the low established last Friday, with scope then to extend its decline to 1.2970, should dollar's strength persists.
Support levels: 1.3090 1.3055 1.3010
Resistance levels: 1.3130 1.3165 1.3200
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.