GBP/USD analysis: Pound higher ahead of PM May Brexit´s strategy disclosure

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3578

Having spent most of the first half of the day confined to a tight range around the 1.3500 level, the GBP/USD pair broke higher in the US afternoon, ending the day some 20 pips below the 1.3600 level, following news indicating that UK's PM May is willing to pay the EU up to €20b, but only if the UK has granted access to the single market after the Brexit, alongside with some form of custom union. PM May is scheduled to speak in Florence, this Friday to finally present her Brexit strategy. So far, the UK and the EU have made little progress on Brexit negotiations, and May´s offer could be decisive when it comes to move forward. The pair gained a modest upward potential with the late intraday advance, but would need to break beyond the 1.3600 figure to be able to advance at a firmer pace. In the 4 hours chart, the price has recovered above a now flat 20 SMA, whilst technical indicators entered positive territory, maintaining their upward slopes, although with limited momentum, favoring the upside anyway.

Support levels: 1.3535 1.3490 1.3450

Resistance levels: 1.3615 1.3650 1.3690

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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