GBP/USD Forecast: Extends gains above 1.2600, ignoring Brexit talks
|- GBP/USD reaches its highest level in three-weeks despite lack of progress.
- Lack of progress in EU/UK negotiations largely priced in.
- Cable could approach 1.2700 in the upcoming sessions.
The GBP/USD pair advanced for the fourth day in a row on Wednesday, climbing above 1.2600 to reach its highest level since Jun 16 at 1.2620, amid dollar weakness and despite the lack of progress in Brexit talks. On Tuesday, UK Prime Minister Boris Johnson reportedly told German Chancellor Angela Merkel that Britain is ready to end the transition period (Dec 31, 2020) without a deal if the EU is not willing to compromise. No major data releases are due on Thursday.
As for the technical outlook, Cable holds a short-term bullish bias, although it could go through a phase of consolidation as the RSI approaches overbought levels. Meanwhile, the price trades well above its main moving averages as it consolidates near three-week highs. If the GBP/USD breaks decisively above 1.2620, it could approach the 1.2690 zone in the upcoming sessions where the 200-day SMA could offer stiff resistance. On the flip side, supports are seen at 1.2520, 20-period SMA in the 4-hour chart and 1.2480, 200-period SMA.
Support levels: 1.2520 1.2480 1.2440
Resistance levels: 1.2620 1.2690 1.2730
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.