GBP/USD analysis: pressuring 1.3100, no light at the end of the Brexit tunnel

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3122

UK PM May wants future customs relationship with the EU to be in place by the end of 2020.
USD broad strength dominated the FX board, hurting further high-yielding Pound.

The GBP/USD pair fell to 1.3094 on the back of dollar's strength, and the lack of progress in Brexit negotiations. UK PM Theresa May was on the wires this Monday, saying that they want future customs relationship with the EU to be in place by the end of 2020 to ensure a backstop wouldn't be necessary, but the problem remains the same: she doesn't explain the "how." The UK Markit Manufacturing PMI came in at 54.4 for June, beating the expected 54.6, but the report did little to help the Pound. Meanwhile, MPC Haldane spoke, all of the sudden taking center stage after joining the hiking club in the latest BOE's meeting, saying that the EU exit is the biggest economic risk the central bank faces. The UK calendar has nothing to offer this Tuesday. The pair fell below the 50% retracement of its latest bullish run, and the 4 hours chart shows that is now finding sellers around a bearish 20 SMA, a few pips above the Fibonacci level, making of the 1.3140 area the immediate resistance. Technical indicators in the mentioned chart have retreated, turning flat in the US afternoon, with the Momentum still above its 100 level but the RSI at around 40, leaning the scale toward the downside.

Support levels: 1.3095 1.3050 1.3010

Resistance levels: 1.3140 1.3185 1.3220

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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