GBP/USD Analysis: Tests resistance level

Dukascopy Bank Team Dukascopy Bank SA

GBP/USD

During Thursday, the GBP/USD exchange rate was volatile as opposition parties of the UK Parliament started a plan to stop a no-deal Brexit. During today's morning, the rate jumped to the resistance level—the weekly R1 at 1.2156.

If the given resistance holds, it is likely, that a reversal south could occur in the nearest future. The rate could trade sideways between the given resistance and the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2077/1.2106 range until the next week.

If the given resistance does not hold, the currency pair could continue to extend gains. In this case, a possible upside target could be the psychological level at the 1.2180 mark.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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