GBP/USD analysis: downward risk limited as long as above 1.2535

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2573

The Pound attempted to recover ground at the beginning of the day, surging against the greenback up to 1.2704 during the London session, but later gave up to renewed dollar's demand and fell down to 1.2548, a fresh one-week low. There were no macroeconomic news coming from the UK, although it was the final day of the Supreme Court's hearing on Brexit, to decide whether Theresa May should get the Parliament's permission to trigger the Art. 50, but a decision will be known probably next week. In the meantime, the pair trades around the 50% retracement of its latest bullish run, and the 4 hours chart shows that the price was unable to regain ground beyond a now bearish 20 SMA, at 1.2665, while technical indicators are posting modest bounces within bearish territory, still far from supporting a steeper recovery. Despite dollar's strength, the downward potential of the pair is limited, as the Pound has been quite reluctant to greenback's demand, trading more on self political woes. Still, a break below 1.2535, the 61.8% retracement of the mentioned rally, will likely signal a downward extension towards a daily ascendant trend line, around 1.2470 for this Friday.

Support levels: 1.2535 1.2500 1.2470

Resistance levels: 1.2625 1.2665 1.2700

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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