GBP/USD analysis: confined to range trading ahead of fresh news

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3231

CBI reported that total orders grew the most in nearly thirty years, up +17.
MPC members diverge on rate views, but agree on Brexit uncertainty weighing on the economy.

The GBP/USD pair seesawed between gains and losses but remained confined to Monday's range and closed the day unchanged around 1.3230. An early advance was sharply reverted as four MPC members testified before the Treasury Select Committee. Policymakers don't share the same view on rate hikes amid slow wages' growth, but coincide on their view about weaker investment, attributed to Brexit uncertainty. Anyway the statement just reminded investors that another rate hike is far away in the future at the time being. On a positive note, the latest monthly Industrial Trends survey from the CBI surprised to the upside, as total orders grew the most in nearly thirty years, up +17 in November from previous -2. The GBP/USD pair held above the daily descendant trend line broken late last week, but the potential upward is limited according to the 4 hours chart, as the price keeps pressuring a bullish 20 SMA, while technical indicators lost upward strength and settled near their mid-lines, directionless.

Support levels: 1.3195 1.3160 1.3130

Resistance levels: 1.3260 1.3300 1.3340

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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