GBP/USD analysis: a light of hope in Brexit negotiations boosts Pound
GBP/USD Current price: 1.3276
The British Pound was on a rollercoaster this Thursday, led by Brexit negotiations' headlines. The UK currency plunged by the end of the London session, after a joint press conference of EU's Michel Barnier and UK's David Davis indicated that the fifth round of Brexit negotiations is in a deadlock, with no progress made, and that the UK government "must be ready for alternatives," if a "mutually beneficial" deal can't be reached. Adding to Pound's negative tone was the BOE's Q3 credit conditions survey, showing that default rates on credit cards and another unsecured lending are on the rise, whilst unsecured lending availability fell at its fastest pace since 2009. The GBP/USD pair, which traded as high as 1.3264 at the beginning of the day, plunged to 1.3121 after the news coupled with US positive macroeconomic data. The pair suffered a sudden change mid American afternoon, and reached a higher high for the day at 1.3290, on a German newspaper headline suggesting that the EU may offer the UK the two-year transition period requested by PM May, but conditioned to the UK meeting financial obligations with the Union. Now trading above the 61.8% retracement of last week's decline, the pair seems poised to extend its advance, at least short term, as in the 4 hours chart support additional gains ahead, as the price settled above its 20 SMA, whilst technical indicators bounced from their mid-lines, favoring additional gains as long as the price holds above the 1.3250/60 price zone.
Support levels: 1.3260 1.3220 1.3180
Resistance levels: 1.3290 1.3330 1.3365
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
