GBP/USD analysis: no relief for Pound

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3238

Risk aversion weighed on a vulnerable Pound, already hurt by Brexit headlines.
GBP/USD next relevant mid-term support at the 1.3040/60 price zone.

The Pound followed the lead of its European counterpart and fell to 1.3203 against the greenback, to finally stabilize around the 1.3250 level. Trading at its lowest for this year, the UK currency was undermined by the dominant risk aversion, and renewed concerns about Brexit, with no deals at sight as the clock keeps ticking toward the final divorce. Poor local macroeconomic data and a dovish BOE are also behind Pound's weakness. The macroeconomic calendar in the kingdom has little to offer this week, nothing that can interfere with the ongoing bearish trend. The short-term picture favors the downside, as a bearish 20 SMA keeps leading the way lower, acting as dynamic resistance now around 1.3315 while technical indicators remain within negative territory, with the Momentum lacking directional strength and the RSI heading lower near the weekly low achieved at the beginning of the day. The next relevant mid-term support comes at around the 1.3040/60 region, where it has multiple weekly highs and lows from the last two years.

Support levels: 1.3200 1.3160 1.3130

Resistance levels: 1.3270 1.3315 1.3350

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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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