GBP/USD Forecast: short term recovery could extend up to 1.3060
|The Pound managed to recover some ground, once again, going against the crowd when compared to the greenback, as the GBP/USD pair trades around 1.3000 in a quiet London morning. There were no macroeconomic releases in the UK, and headlines on Brexit showed that, after four days of negotiations, ministers are still at square one. The main disputes between the EU and the UK are citizens' rights and the so-called divorce bill, said to be of around €100 billion. The US calendar will also remain empty this Friday, with only Baker Hughes' rig count to be released by the end of the European session.
The ongoing advance seems purely driven by dollar's broad weakness, and from a technical point of view, the risk remains towards the downside, as in the 4 hours chart, the price remains below a bearish 20 SMA, this last providing an immediate resistance around 1.3020, whilst technical indicators hold within negative territory, lacking directional strength. If the pair manages extend beyond the mentioned level, the upward corrective move can extend up to the 1.3060 region, where selling interest will likely re-surge. Below 1.2960, on the other hand, the risk turns towards the downside with the next supports for today at 1.2930, the weekly low, and 1.2890.
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.