GBP/USD analysis: Pound vulnerable as Brexit looms
|GBP/USD Current price: 1.2461
The GBP/USD pair advanced up to 1.2482 during the London morning, and settled around 1.2460, as the House of Lords began debating the Brexit bill. Policymakers are expected to pass it with no amendments, clearing the way to trigger the Art. 50 next March. There were some minor macroeconomic releases in the UK, with a better-than-expected Rightmove house price index, up by 2.0% in January, yet at the same time, the slowest rate of price gains in four years. The CBI orders survey showing that industrial orders for February rose to a two-year high, with the index up to 8 from previous 5 and the expected 3. Despite this short term recovery, the Pound remains vulnerable ahead of the upcoming Brexit, particularly after recently released data indicating higher inflation is beginning to affect the economy. Technically, the 4 hours chart shows that the price is now around a horizontal 20 SMA, which also converges with a flat 200 EMA, this last indicating the absence of clear trend since early February, whilst technical indicators head south after failing to overcome their mid-lines, all of which supports a new leg lower, on renewed selling interest below 1.2430, the immediate support.
Support levels: 1.2430 1.2380 1.2345
Resistance levels: 1.2480 1.2530 1.2565
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