GBP/USD analysis: Pound gets help from Brexit headlines

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3182

Encouraging UK news backed a modest recovery, GBP/USD battling with 1.3200.
BOE's Super Thursday could end up being a disappointing event.

The GBP/USD pair settled below 1.3200 after peaking mid-US afternoon at 1.3216, with the Pound fining support on headlines indicating that UK PM May got another parliamentary victory, defeating in the House of Commons the amendment proposed by the pro-EU conservative lawmakers to win the Brexit 'meaningful vote' (319 vs. 303) in the Parliament. The UK is due to leave the Union next 29 March 2019. A minor report released at the beginning of the day was also encouraging, as the UK CBI industrial trends showed a nice rebound in manufacturers' total order books, with the headline figure coming in at +13 after the discouraging -3 in May. The Bank of England will unveil its latest monetary policy meeting this Thursday, although no changes are expected, and could end up being a non-event. The only chance of some action comes from the MPC vote count and any divergence with the current 7-2. The recovery could be understood as a mere correction in between the dominant bearish trend, as in the 4 hours chart, the pair retreated after testing a strongly bearish 20 SMA, while technical indicators remain within negative levels, the Momentum having already lost upward strength and the RSI at 40. The pair set a fresh 2018 low at the beginning of the day at 1.3146, with a downward acceleration through the level opening doors for a steeper slide toward the 1.3000 figure.

Support levels: 1.3145 1.3110 1.3070

Resistance levels: 1.3215 1.3250 1.3280

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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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