GBP/USD analysis: closing up to key 1.3000 level

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2975

The Pound keeps advancing amid hopes for an extension of Art. 50 despite the government denies it.
Government said progress made in talks, but no plan B yet seen the light.

The GBP/USD pair surged to a fresh 2-month high of 1.2984 in the US afternoon, with the Pound on strong demand, despite persistent Brexit uncertainty. The facts that PM May's deal was rejected and that she retains her power by measly 19 votes after suffering a leadership challenge, doesn't seem to bother speculative interest, which now bets for an extension of Art. 50, despite the UK government, has repeatedly denied intentions to do so. EU Barnier delivered a speech on the matter, saying that, while there are plans for a disorderly Brexit, it would be more important to reach a deal. However, he kept the ball on the UK's side of the court, adding that is up to Britain to decide how to proceed now. Meanwhile, the UK government has said that there has been progress in talks with opposition Labour lawmakers, although no plan B has yet seen the light. The UK will release this Friday, December Retail Sales figures.

The pair is technically bullish, approaching the key 1.3000 mark. The 4 hours chart shows that a bullish 20 SMA keeps providing intraday dynamic support, currently at around 1.2870, while the indicator keeps advancing above the 200 EMA, this last modestly bullish over 200 pips below the current level. The RSI indicator in the mentioned chart near oversold levels, while the Momentum maintains a bullish slope well above its midline, indicating the advance may continue during the upcoming sessions.

Support levels: 1.2930 1.2885 1.2840

Resistance levels: 1.3000 1.3035 1.3080

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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