GBP/USD analysis: Brexit uncertainty keeps investors sidelined

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2931

GBP/USD marginally down on the back of renewed dollar's demand.
Absence of UK macroeconomic news benefiting the Pound.

The GBP/USD pair advanced up to 1.2961 and held nearby through the US session, retreating just modestly despite risk aversion returned in the American afternoon. There were no fresh macroeconomic or Brexit-related news coming from the UK, and the mentioned daily peak was the result of softer-than-expected US data. Uncertainty on what will be next on Brexit is probably helping the pair to hold on to its recent gains. There are no macroeconomic events scheduled in the UK for this Friday. In the meantime, the pair retains a mildly positive tone in the short-term, given that in the 4 hours chart, technical indicators remain well above their midlines, although losing upward strength. The 20 SMA in the mentioned chart has turned flat, now around the key Fibonacci level at 1.2890, reinforcing it. The pair, however, seems unable to surpass the 200 EMA, which is any way flat but tends to act as a directional barrel in GBP crosses.

Support levels: 1.2890 1.2845 1.2800

Resistance levels: 1.2930 1.2980 1.3010

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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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