GBP/USD Current Price: 1.2427
- UK PM Johnson met his Luxembourg counterpart, meeting ended without progress in talks.
- GBP/USD retreated from its recent highs but retained the positive technical stance.
The GBP/USD pair fell to 1.2398, weighed by renewed demand for the greenback in a risk-averse environment and discouraging Brexit headlines, although it later recovered to settle at around 1.2420. The UK released the September Rightmove House Price Index, which slid 0.2% monthly basis and advanced by a modest 0.2% when compared to a year earlier. In the Brexit front, UK PM Boris Johnson met with his Luxembourg counterpart, Xavier Bettel, later skipping the press conference. Better was left alone, and criticized Johnson for failing to clarify what he wanted from Brexit. He then reiterated that the European Union won't give the UK another Brexit extension "just for the sake of another extension," and that the Withdrawal deal signed by former PM May is so far the only solution possible. There are no macroeconomic events scheduled in the UK this Tuesday.
GBP/USD short-term technical outlook
The GBP/USD pair maintains its bullish technical stance despite retreating roughly 100 pips, as, in the 4 hours chart, the pair holds above all of its moving averages, which maintain their upward slopes. The 20 SMA offers an immediate dynamic support at around 1.2390. Technical indicators in the mentioned chart hold within positive levels the Momentum trying to resume its advance and the RSI stable at around 56, indicating a limited selling interest. The bearish case could become stronger on a break below the mentioned 20 SMA, the immediate support.
Support levels: 1.2390 1.2350 1.2510
Resistance levels: 1.2460 1.2500 1.2545
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