GBP/USD analysis: scope to extend its recovery to 1.3200
GBP/USD Current price: 1.3150
- NIESR GDP estimate next relevant release.
- Brexit jitters ignored for the day, but to weigh on Pound anyway.
The Pound was among the best performers against the greenback this Monday, with the GBP/USD pair trimming its Friday losses and back to the 1.3150 by the end of the day. The pair also recovered half of the post-BOE decline when it neared the critical 1.3000 threshold. There were no macroeconomic releases in the UK, but political headlines hit the wires. UK PM May spoke before an official business lobby group but beyond her pledged to get the "best deal possible" when it comes to trade in the post-Brexit era, urging British businesses to be realistic about how long it will take to reach that deal, there were no new details. This Tuesday, the Pound could be affected by the NIESR GDP estimate for the three months to October, previously at 0.4%. Short term, the 4 hours chart suggests that the pair can extend its current recovery, although the longer-term perspective is bearish for Pound. Technical indicators in the mentioned time frame entered positive territory maintaining their strong upward slopes, while the price surpassed its 20 SMA that anyway maintains a bearish slope. The 50% retracement of the latest daily decline stands at 1.3165, being then the immediate resistance, ahead of the 1.3200 figure, where the pair has the 200 EMA and the 61.8% retracement of the same side.
Support levels: 1.3125 1.3085 1.3040
Resistance levels: 1.3165 1.3200 1.32545
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.
