GBP/USD analysis: holding on to 1.3000, range bound

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3008

The Pound started the week with a negative footing, but persistent dollar's weakness helped the GBP/USD pair to regain the 1.3000 level, in spite of Brexit turmoil. The pair gapped lower at the opening, undermined by Brexit's minister Davis, who said that the UK can leave the negotiation's table should the EU insist on the payment of a Brexit bill of around €100 billion. The pair fell to 1.2965 before stabilizing, regaining the upside ahead of Wall Street's opening as the market resumed dollar's selling. The issue, however, remains as a Damocles' sword pending above Pound, as EU's chief Brexit negotiator, Michel Barnier, reiterated this Monday that there won't be any trading arrangement discussion until the accounts are settled. From a technical point of view, the pair holds a neutral stance, with the price barely above its 20 SMA, and the Momentum indicator heading nowhere around its mid-line, while the RSI also consolidates but around 56. The pair will likely retain the neutral stance ahead of the UK election, with a limited downward scope on persistent dollar's weakness.

Support levels: 1.2995 1.2960 1.2920

Resistance levels: 1.3060 1.3100 1.3135

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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