GBP/USD: eyes on Brexit negociations; pound has been robust on 1.25 handle
|GBP/USD is currently trading at 1.2540 at time of writing with an early starting high at 1.2564 and a low of 1.2526.
GBP/USD is robust despite the recent downgrade to 2016 Q4 UK GDP. This was dropped by a marginal 0.1% from the previous 2.0% on the back of total business investment falling by 0.9% in the last three months of 2016.
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Meanwhile, the focus has been more with Brexit; The pound closed at 1.2528 for the month of March. Opening today at 1.2542, there will be plenty going on with sterling from here on given the recent triggering of Article 50 and the subsequent potential for two-year's worth of negotiations with the EU. At the same time, we had headline last week that the Scottish Parliament has backed FM minister Sturgeon to trigger a second independence referendum.
GBP/USD levels
Valeria Bednarik, chief analyst at FXStreet explained that technically, the daily chart for the pair shows that the upside is favored: "The price settled above the 23.6% retracement of its January's rally and well above a bullish 20 SMA, whilst the RSI indicator resumed its advance within positive territory, now heading north around 60. In the 4 hours chart, technical indicators maintain upward slopes well into positive territory, whilst the 20 SMA has turned flat well below the current level, in line with the longer-term perspective."
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