GBP/USD: weak dollar saves the day
|GBP/USD Current price: 1.3204
- Pound vulnerable to Brexit-negotiations' headlines.
- Speculative interest rushing to sell on spikes.
The GBP/USD pair run to 1.3259, its highest for this week, as the dollar resumed its decline, although the pair changed course and trimmed its daily gains to settle around 1.3200, with no particular catalyst behind this latest decline, but profit-taking. There were no macroeconomic releases coming from the UK today, with headlines around the Pound focused on Brexit woes. Negotiations remain in a stalemate, and UK David Davis, the Brexit secretary, suggested that Germany and France are to blame for the situation, as they are blocking trade-talks. On Thursday, rumors made the rounds of the EU not willing to give any special treatment to the UK post-Brexit, and while the Pound seems to be dealing quite well with this headlines, indeed they pose a risk towards the downside.
From a technical point of view, the 4 hours chart shows that the pair is meeting short-term buying interest on approaches to its 200 EMA, flat around 1.3180 while the 20 SMA turned sharply higher below it, now nearing the mentioned level and reinforcing it. Indicators in the mentioned chart turned south within positive territory, but the downward momentum eased, as the RSI is now flat around 56. Advances are likely in the case of a dollar's sell-off, with short-term resistances from here at 1.3225 and 1.3260. Below the mentioned 1.3180 region, on the other hand, the pair could near 1.3100 before the week is over.
Support levels: 1.3180 1.3140 1.3100
Resistance levels: 1.3225 1.3260 1.3300
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