GBP/USD Analysis: Brexit uncertainty remains the same

Valeria Bednarik FXStreet

GBP/USD Current Price: 1.2133

UK PM Johnson said he is confident the EU will agree to modify the Withdrawal Agreement.
Labour leader Jeremy Corbyn insisted on the need of a general election.
GBP/USD intraday bounces will likely attract selling interest.

The GBP/USD pair ended the day marginally lower in the 1.2130 price zone, although it managed to post a higher low daily basis, peaking at 1.2172, a couple of pips below Friday’s high. The British Pound was undermined by renewed concerns about a hard-Brexit, as Labour Leader, Jeremy Corbyn insisted on the need of a general election and vowed to do whatever it takes to prevent leaving the EU without a deal. PM Johnson, on the other hand, hit the wires by the end of the London session, saying that he is confident the EU will change their view and drop the Irish backstop from the Withdrawal Agreement. Johnson will meet with German Chancellor Angela Merkel and French President Emmanuel Macron next Thursday. The UK released the August Rightmove House Price Index, which declined by 1.0% MoM and advanced by 1.2% YoY. This Tuesday, the kingdom will publish the CBI Industrial Trends Survey-Orders for August, previously at -34.

GBP/USD short-term technical outlook

The GBP/USD pair has continued hovering around the 23.6% retracement of its latest daily decline. In the 4 hours chart, the 100 SMA keeps heading north, now converging with the mentioned Fibonacci level, while the 20 SMA advances below the current price, providing an immediate support at around 1.2105. The RSI indicator is flat at around 55, while the Momentum indicator eases within positive levels, all of which leave a neutral technical stance. The risk remains skewed to the downside, with intraday advances still seen as selling opportunities.

Support levels: 1.2100 1.2065 1.2020

Resistance levels: 1.2170 1.2210 1.2250

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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