GBP/USD analysis: Pound posts shallow bounce from fresh 2018 lows

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3409

Brexit talks and BOE's Inflation Report scheduled for this Tuesday.
USD still the strongest currency despite Monday's blues.

The GBP/USD pair fell down to 1.3390 this Monday, its lowest for this year to later regain the 1.3400 figure, although unable to extend far above the figure, as despite easing during the US session, the greenback remains the strongest currency across the FX board. This Tuesday, a fresh round of Brexit negotiations begins, and the Pound could suffer the consequences, particularly if there is no solution for the Ireland border issue. The BOE will present its Inflation Report with governor Carney testifying before the UK's Parliament's Treasury Committee. Investors will be looking for clues on whether an August rate hike is possible or not. Technically, the pair has gained downward traction short-term, now developing below a mild bearish 20 SMA in the 4 hours chart. The Momentum indicator hovers within negative levels, turning south above its daily low, while the RSI indicator is steady at 33, favoring another leg lower in the pair during the upcoming sessions.

Support levels: 1.3390 1.3355 1.3320

Resistance levels: 1.3445 1.3490 1.3520

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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