GBP/USD analysis: battling within the 12900/20 region

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2909

The British Pound benefited from dollar's weakness, with the pair surging up to 1.2915 to end the day slightly below the level. Early Monday, the UK Rightmove House Price index showed that home prices fell 0.9% in August and when compared to the previous month, the largest fall for this year. When compared to a year earlier, prices rose by 3.1%. In the meantime the UK has prepared a proposal to ensure trade in goods and services can continue after the Brexit, ahead of the third round of talks in Brussels next week, but is well-known that the EU won't discuss any trade issue before other issues, including citizens' rights and the Brexit bill, which means that little progress should be expected once again. The pair settled at the upper end of its latest range, but further gains can't be confirmed just yet, as the pair settled above a still flat 20 SMA, while technical indicators remain within neutral territory, with no certain directional strength. An upward acceleration through 1.2930 could see the pair extending up to 1.2965, but it would take a clear break above this last to confirm additional gains ahead, something quite unlikely at the time being.

Support levels: 1.2875 1.2830 1.2795

Resistance levels: 1.2930 1.2965 1.3000

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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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