GBP/USD analysis: Eyeing a retest of 1.2793

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2963

View Live Chart for the GBP/USD

Brexit talks pushed the Sterling below the 1.3000 level against the greenback, with the GBP/USD pair plunging to its lowest in five weeks, down to 1.2914 on Friday before closing around 1.2963. The decline was fueled by comments coming from the Foreign Minister Boris Johnson, who said that the UK could invoke article 50 as early as the first half of next year, and leave the EU by 2019. The PM's office however, later said that is Theresa May alone, who will decide the terms of the Brexit, but the Pound was unable to recover the ground lost. As for the technical picture of the pair, the daily chart shows that the price is now developing below a modestly bearish 20 SMA, while technical indicators are at fresh 2-month lows, and maintaining their bearish slopes, suggesting that the decline may extend further this week. In the shorter term, and according to the 4 hours chart, technical readings lack directional strength, but the price is below a horizontal 20 SMA, the RSI indicator stands flat around 37, while the Momentum hovers around its mid-line, all of which also favors a bearish extension towards 1.2793 the 31-year low posted after the Brexit.

Support levels: 1.2910 1.2870 1.2830

Resistance levels: 1.3000 1.3035 1.3070

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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