GBP/USD analysis: bears will take control on a break below 1.3045
GBP/USD Current price: 1.3104
- Brexit talks to resume mid-August, with the focus still on the Irish border issue.
- GBP/USD pair at risk of falling further after three weeks of closing in the red.
The GBP/USD pair edged lower for a third consecutive week but managed to close a couple of pips above the 1.3100 threshold, unchanged Friday as US data failed to impress speculative interest. The Sterling Pound saw little action these last few days, as the UK didn't release relevant macroeconomic figures, while the government didn't provide fresh Brexit headlines, beyond the fact that EU Chief Negotiator Barnier rejected PM May's proposal on the Irish border, nothing that can surprise the markets. Brexit talks will resume mid-August. This Monday, the UK will release June money data, including Mortgages Approvals. The daily chart for the pair showed that it attempted to recover ground beyond a mild bearish 20 DMA, but failed, with the indicator currently at around 1.3190, providing a dynamic resistance. In the same chart, the Momentum hovers right below its 100 level, while the RSI turned flat around 43, all of which skews the risk toward the downside without confirming it just yet. Shorter term, and according to the 4 hours chart, the pair also presents a neutral-to-bearish stance, having held Friday below a directionless 20 SMA and with technical indicators heading nowhere within negative levels. The bearish momentum will likely increase on a break below 1.3045, a static strong support.
Support levels: 1.3090 1.3045 1.3010
Resistance levels: 1.3145 1.3190 1.3230
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.
