GBP/USD analysis: "promising" start to Brexit negotiations

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2734

The GBP/USD pair started the day with a strong footing, reaching a daily high of 1.2814 after London's opening, but fading gains with early Fed's Dudley speech, later sliding after the official start of Brexit negotiations in Brussels. UK's David Davis and the EU's Michel Barnier hold a joint press conference, full of good intentions, but just an introduction to what's expected to be a long, rough path. Davis highlighted that settling priority issues will build trust on which to negotiate new relationship, while Barnier foreground the constructive approach, saying their off to a promising start. The pair fell down to 1.2722 in the US afternoon, ending the day some pips above the level, still within familiar ranges, but gaining bearish traction short term. In the 4 hours chart, the early advance stalled a few pips below last week's high and the 200 EMA, this last around 1.2820, while technical indicators turned south, and particularly the RSI stands at 44, anticipating some further slides ahead on a break below 1.2705, February's monthly high and the immediate support.

Support levels: 1.2705 1.2665 1.2630

Resistance levels: 1.2760 1.2795 1.2830

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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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