GBP/USD analysis: investors cautious ahead of EU Brexit Summit

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3265

Pound holds ground, but can't rally despite broad dollar's weakness ahead of Brexit clarity.
UK BBA Mortgage approvals and CBI survey on realized sales to be out Tuesday.

The GBP/USD pair fell to a daily low of 1.3220 during the London session, but bounced on broad dollar's weakness to settle around 1.3260, little changed from Friday's close. The Pound upward potential was limited by Brexit jitters ahead of the EU Summit that will take place by the end of the week. Concerns that the UK won't offer a convincing offer to make progress toward the final divorce, undermine demand for Sterling. There were no macroeconomic releases in the UK although this Tuesday, the calendar will become a bit more lively with the release of May BBA Mortgage Approvals and the CBI survey on realized sales for June. The pair remained below Friday's high of 1.3314, while daily basis, it settled a lower low and a lower high, which somehow leans the risk toward the downside. In the 4 hours chart, the pair met buying interest around a bullish 20 SMA, currently at 1.3235, while technical indicators lost upward strength, the Momentum nearing its mid-line with a vertical slope and the RSI hovering around 55, in line with the limited buying interest around the pair. A bullish continuation is possible short-term on a break above the mentioned 1.3314 level, although investors will likely be cautious and rush to take profits out of the table ahead of Brexit clarity.

Support levels: 1.3235 1.3205 1.3170

Resistance levels: 1.3280 1.3315 1.3350

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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