GBP/USD analysis: political uncertainty undermines Pound
|GBP/USD Current price: 1.3215
The GBP/USD pair saw little action this Wednesday, confined to a tight range around the 1.3200 level for most of the day. Despite broad dollar's weakness, the Pound was unable to gather upward momentum, undermined by UK's political uncertainty, perceived as a major downward risk for Sterling. In the meantime, the fifth round of Brexit negotiations is under way, and as usual, the only thing that stands out if the absence of progress. An announcement of whether they achieved it or not, is expected by the end of the next week. This Thursday, the BOE will release its credit conditions survey, hardly a big market mover, while no other big news are scheduled in the UK for the rest of the week. According to the 4 hours chart, the risk is lean towards the downside, as the price is stuck around the 50% retracement of its last week's decline, having held for a second consecutive week above the 38.2% retracement of the same slide at 1.13170, and with the 20 SMA gaining upward strength below this last. Technical indicators have opposite directions, but within positive territory, with the RSI heading north around 58, also favoring a new leg higher, particularly on an extension above 1.3230, the immediate resistance.
Support levels: 1.3170 1.3130 1.3090
Resistance levels: 1.3230 1.3260 1.3300
View Live Chart for the GBP/USD
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