GBP/USD analysis: Brexit heating up
GBP/USD Current price: 1.2887
The GBP/USD pair fell to its lowest in two weeks early London, printing 1.2853 before bouncing, to close the day unchanged at the 1.2880 region. In the news, PM Theresa May called for more cross-party cooperation in pushing though Brexit legislation, getting mocked by Labour Corbyn, who said that if she is running out of ideas, she should read the party's manifesto. May's position as leader of the UK has weakened ever since the election, and her ability to run the kingdom is still in doubt, despite allying with the DUP. The news have not affected the Pound so far, but indeed added to the negative tone of the GBP. In the macroeconomic front, a couple of MPC members will hit the wires on Tuesday, while UK employment data will be released on Wednesday. From the technical point of view, the 4 hours chart shows that the price continues developing below a bearish 20 SMA, this last around 1.2920, while technical indicators have bounced modestly within negative territory, maintaining the risk towards the downside. The same chart shows that the price held above the 38.2% retracement of the latest daily advance at 1.2860, the level to break to confirm additional declines ahead.
Support levels: 1.2860 1.2820 1.2785
Resistance levels: 1.2925 1.2960 1.3000
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.
