GBP/USD analysis: bearish pressure eased, but it's still present

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2870

The GBP/USD pair fell for a third consecutive week to settle at 1.2870 on Friday, although the bearish pressure somehow eased over the last few days, mostly due to self-dollar's weakness. The Pound has been unable to attract buyers ever since BOE's chances of a rate hike fell alongside with inflation expectations. Despite being well above the central bank's 2% target, inflation has been below expected for two consecutive months, taking off the pressure over policymakers. Still, uncertainty surrounding the economic future of the kingdom after the Brexit, undermines demand for Sterling. The pair has been consolidating for three consecutive days, and Friday ended up with a doji, indicating that the BOE's on-hold stance has been fully priced-in, and that the market will now wait for fresher clues to decide what's next. Nevertheless, technical readings keep suggesting further slides ahead as the price settled well below a bearish 20 DMA, whilst technical indicators maintain their bearish slopes, nearing oversold levels. In the 4 hours chart, the technical picture is neutral-to-bearish with the pair stuck around a bearish 20 SMA, the Momentum indicator heading nowhere around its 100 level, and the RSI indicator heading modestly south around 42. The pair bottomed for the week at 1.2831, the immediate short-term support for this Monday.

Support levels: 1.2830 1.2795 1.2760

Resistance levels: 1.2895 1.2930 1.2965

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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