GBP/USD analysis: Brexit-related headlines keep leading the way

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3022

EU-UK next submit in two weeks, EU's Tusk urged UK to stop "wasting time."
Upward potential limited for GBP/USD, risking a test of 1.2880.

The GBP/USD pair regained the 1.3000 level, extending intraday gains up to 1.3040, with the Sterling getting a helping hand from headlines indicating that the latest UK proposal on the Irish border issue, makes finding a compromise possible. Tensions, however, remain as the European Council president, Donald Tusk, said that the UK needs to stop "wasting time" and find a solution on the matter. Speaking alongside with Irish PM Varadkar, Tusk said that the EU is united behind Ireland, in its determination to avoid borders in the island. So far, nor the EU, neither the UK seems willing to give in. There were no macroeconomic news in the UK, and this Friday it will only offer the Halifax House Prices for September.

Meanwhile, the pair settled a handful of pips above the 1.3000 level, up from a daily low of 1.2921. The 4 hours chart shows that the pair was unable to surpass a flat 200 EMA, but so far holds above an also directionless 20 SMA. The Momentum indicator in the mentioned chart maintains its upward slope within positive territory, but the RSI indicator is currently easing around its mid-line, rather limiting the upward potential than favoring a new leg lower. Renewed selling interest below 1.2960, however, should open doors for a steeper decline toward a major static support at around 1.2880.

Support levels: 1.2960 1.2920 1.2880

Resistance levels: 1.3040 1.3085 1.3120

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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