GBP/USD analysis: boosted by dollar's weakness, by Brexit weighs in the background

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2801

The GBP/USD pair reached the 1.2800 region, backed by comments from BOE's Carney earlier on the day and broad dollar's weakness, although the pair was unable to surpass last week's high of 1.2814. Following the release of the UK Financial Stability report, Carney offered a press conference, announcing that the Central Bank will raise banks' required capital buffer from 0.5% to 1.0% in November, but the report was overall positive about local conditions, assessing the overall risks from the domestic environment to be at a "standard level." The strong rally in the EUR/GBP cross limited Pound gains, alongside with Brexit jitters, always pending in the background. Anyway, the pair is technically bullish according to the 4 hours chart, with the price having bounced again earlier on the day from a bullish 20 SMA, now crossing above its 200 EMA for the first time since the election on June 8th. In the same chart, technical indicators head higher within positive territory, with the RSI indicator nearing overbought levels, in line with further gains ahead. The pair has multiple intraday highs in the 1.2810/20 region, the next resistance area to surpass to confirm additional gains ahead.

Support levels: 1.2760 1.2720 1.2670

Resistance levels: 1.2820 1.2855 1.2900

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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