GBP/USD analysis: bullish short-term, sellers to take their chances at higher levels

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2768

Pound benefited from broad dollar's weakness, market sets Brexit uncertainty aside.
GBP/USD could extend gains beyond 1.2814 if the positive mood persists.

The Sterling is once again among the best performers, extending its advance against the greenback up to 1.2786, its highest in over a week. The rally is directly linked to broad dollar's weakness and an increased appetite for riskier assets. Market players are so far ignoring the risk related to the Brexit's deal vote in the Parliament, scheduled for next week. PM May said this Sunday that the UK would be in "uncharted territory" if lawmakers reject her deal, but there are little hopes she will get the approval of the Houses. The Parliament will start discussions on the matter this Tuesday, set to trigger intraday volatility.

The GBP/USD pair trades near daily highs ahead of the Asian opening, and holding on to a short-term positive tone according to the 4 hours chart, finding support in a flat 200 EMA, currently at 1.2720, while the 20 SMA turned barely up below it. The Momentum indicator in the mentioned chart barely eases from overbought readings while the RSI indicator keeps heading north, currently at around 65. A relevant resistance comes at 1.2814, the high set on the last trading day of 2018, with a spike higher expected on a break above it, but most likely, to be short-lived.

Support levels: 1.2730 1.2695 1.2655

Resistance levels: 1.2780 1.2815 1.2850

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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