GBP/USD analysis: at fresh post-Brexit referendum's highs

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3887

Pound benefits from an unattractive dollar.
UK calendar has little to offer until next Friday, US housing figures up next.

The Pound is among the best performers across the FX board this Wednesday, jumping to a fresh post-Brexit referendum high of 1.3894, despite US positive data released just ahead of the advance. It has been long since traders have been paying little attention to US macroeconomic releases when trading GBP/USD. There was no certain catalyst behind Pound's appreciation, beyond dollar's persistent weakness, and a bout of demand for higher risk assets ahead of London's fix. The UK has nothing to offer this Thursday, with the kingdom next relevant figure being Retail Sales, to be released on Friday. The short-term picture for the pair is bullish, as in the 4 hours chart, the price bounced sharply after struggling with a bullish 20 SMA, holding near the mentioned high by the end of the US session. Technical indicators in the mentioned chart, are also supporting additional gains ahead with the RSI indicator heading higher within overbought territory and the Momentum also regaining the upside bouncing from its 100 level. Speculative interest seems determinate to test the 1.4000 threshold a possible bullish target for the upcoming session, should the greenback remain under pressure.

Support levels: 1.3835 1.3800 1.3770

Resistance levels: 1.3895 1.3920 1.3960

View Live Chart for the GBP/USD

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.

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