GBP/USD analysis: Brexit uncertainty to keep Pound pressured

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2204

The GBP/USD pair lost some ground at the beginning of the week, settling around 1.2200. The UK CBI industrial trends survey data brought mixed news for the Pound, as manufacturing orders weakened sharply in October to –17 from –5 in September while manufacturing output and orders grew over the last quarter, with export volumes´ growth being the strongest in over two and half years, due to a weaker Pound. In another news, Theresa May addressing to the Parliament, said that the UK will be "the most passionate, enthusiastic and convinced" supporter of free trade in the world after it leaves the EU. Also, she hosted a meeting with the leaders of Scotland, Wales and Northern Ireland about the progress of Brexit. Uncertainty surrounding the economic future of the UK keeps growing, which means that the Pound will likely remain under pressure. Technically, the pair maintains a neutral-to-bearish stance, given that in the 4 hours chart, the price remained capped by a modestly bearish 20 SMA, whilst indicators lack directional strength within negative territory. Friday's low at 1.2170 is the immediate support, with a break below it required to confirm a bearish extension for this Tuesday.

Support levels: 1.2170 1.2130 1.2090

Resistance levels: 1.2245 1.2290 1.2330

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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