GBP/USD analysis: quiet consolidation, 1.3040 matters

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3002

View Live Chart for the GBP/USD

The GBP/USD pair consolidated its latest gains around the 1.3000 mark, having held between a well-limited range within 1.2980 and 1.3030 daily basis. The Pound was trying to correct higher at the beginning of the London session, but the rally was interrupted by BOE's Deputy Governor Minouche Shafik, as she said that the Central Bank could ease its economic policy further as soon as next November, claiming that she´d “rather be on the front foot and act preemptively, rather than be on the back foot and do too little too late.” The Sterling eased with her comments, but soft US data limited dollar's gains. From a technical point of view, the upside continues to be limited as long as the price remains below 1.3040, the 23.6% retracement of the latest daily decline between 1.3420 and 1.2914, still the immediate resistance. Intraday readings continue favoring an upward continuation, particularly if the price manages to extend beyond the mentioned level, as in the 4 hours chart, the price has repeatedly bounced from a modestly bullish 20 SMA, whilst technical indicators are advancing within positive territory, with limited upward strength ahead of the Asian opening.

Support levels: 1.2980 1.2950 1.2910

Resistance levels: 1.3040 1.3075 1.3110

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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