GBP/USD analysis: election and Brexit negotiations to lead the way

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2840

The GBP/USD pair recovered up to 1.2850 this Monday, settling a few pips below it, amid continued dollar's weakness, despite thin trading conditions. There were no macroeconomic news coming from the UK, although PM May confirmed that Brexit negotiations will start next June 19th, urging voters to give her the support she needs in the upcoming national election. The announcement came after a survey poll led by The Independent showed that most voters want to know more about the Brexit plan before the election. Indeed, the Pound will be all about election and Brexit during the next couple of weeks, with polls leading the way, as both currencies are equally weak these days. From a technical point of view, the risk turned towards the downside after the bearish breakout of 1.2900, although there's still a critical support in the way towards 1.2500, the 1.2756 low set on April 21st, as it’s the lowest since PM May announced the election. Technical readings in the 4 hours chart confirm the negative bias, as technical indicators have barely corrected oversold conditions before losing upward strength, whilst the price keeps developing below a bearish 20 SMA, now providing resistance around 1.2880.

Support levels: 1.2790 1.2765 1.2730

Resistance levels: 1.2840 1.2885 1.2920

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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