GBP/USD Forecast: selling the rallies
|Broad dollar's weakness was not enough to offset Brexit fears, resulting in the GBP/USD pair falling down to 1.2139 this Friday, after trading as high as 1.2316 in the previous day. The pair bounced modestly from the level, still in the red weekly basis. On Thursday, the pair retreated on news that Theresa May will deliver a Brexit speech next Tuesday put investors in alert. The PM will likely set out the guidelines of the government's Brexit strategy, ahead of the court ruling on whether the Parliament should be given or not, a vote on the timing of the start of Britain's exit from the EU.
No trading around 1.2190, the 4 hours chart shows that the price is struggling around a horizontal 20 SMA, whilst technical indicators are posting modest bounces from their mid-lines, lacking enough momentum in the short term. Upcoming US data will likely define the tone for this last trading day of the week, although advances are still seen as selling opportunities, once the dust settles on the bullish intraday trigger.
A recovery above 1.2210 could see the pair extending its gains up to 1.2280, with further upward momentum exposing 1.2330 a major static resistance level where selling interest is expected to resume. Below 1.2140, the daily low, the decline will likely extend down to 1.2080, whilst beyond this last, 1.2037, the weekly low comes next.
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.