GBP/USD analysis: Pound gains, but Brexit deal's vote looms
|GBP/USD Current price: 1.2737
- Pound surged on positive local data, better market mood.
- Brexit deal unlikely to pass Parliament, preventing Sterling from appreciating further.
The GBP/USD pair managed to post a modest weekly gain, settling above the 1.2700 level, as soaring equities played against the greenback, while UK data surprised to the upside, with the Markit Services PMI printing 51.2, bouncing from 50.4 in the previous month, although still indicating a subdued end of 2018. The Sterling advanced against its American rival for a third consecutive week, barely enough to trade around December opening level. However, the positive stance could soon be reversed, as the Parliament is set to reject UK PM May's Brexit deal, and the government has no plan B, but to insists that is either that deal o no deal.
The daily chart for the pair offers a mildly positive technical stance, as it closed Friday above its 20 DMA, as technical indicators bounced from around their midlines, lacking, however, enough momentum to confirm an upward extension in the upcoming sessions. In the 4 hours chart, the pair settled a couple pips above its 200 EMA and well above a still bearish 20 SMA, while technical indicators entered positive ground, although the RSI lost its upward strength around 59, indicating that buying interest is still limited above the 1.2700 mark.
Support levels: 1.2695 1.2655 1.2610
Resistance levels: 1.2745 1.2780 1.2815
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