GBP/USD analysis: retreating from 1.2690, but still at weekly highs

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2580

The GBP/USD pair rallied up to 1.2695, its highest since October 6th fueled by comments from UK's Brexit Minister, David Davis. Speaking before the Parliament, Davis said that the UK may be able to access the EU single market by making contributions to the EU budget. Fears over a "hard Brexit" have kept the Pound under pressure, with the market betting on an economic collapse in the kingdom if access to the single market is not granted. In the macroeconomic front, the UK Markit manufacturing PMI for November came in at 53.4, slightly below the 54.5 expected, while the Nationwide Housing price index rose by 0.1% in the same month, when compared to October figures. The price retreated over 100 pips in the US afternoon, following strong US manufacturing figures, and the 1 hour chart for the pair shows that the technical indicators have retreated from extreme overbought readings, but remain within positive territory, whilst a bullish 20 SMA heads strongly higher around 1.2555, the immediate support. In the 4 hours chart, technical indicators have also turned sharply lower from overbought readings, while the 20 SMA has begun to gain some upward strength, now around 1.2490.

Support levels: 1.2555 1.2490 1.2440

Resistance levels: 1.2595 1.2635 1.2680

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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