GBP/USD analysis: UK sour headlines keep coming, but Pound holds to gains

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2481

Despite multiple negative headlines coming from the UK, the GBP/USD pair managed to close the day flat around 1.2481. There were no macroeconomic releases in the UK, but Brexit jitters were at top of the list, as, ahead of the trigger of the Art. 50 next week, the EU and the UK are already engaged in a discussion. EU authorities are claiming a bill that can go up to £60 billion for different liabilities including UK's share of pensions liabilities, loan guarantees and spending on UK-based projects, whilst UK government don't recognize such debt, talking about a maximum payment of £2-3 billion. Also, the Scottish parliament was set to debate on a second independence referendum, but got suspended it in the wake of the Westminster terror attack. At least two people died in an incident at the Housed of Parliament, with a vehicle mowing down about a dozen pedestrians on London's Westminster Bridge, before crashing into the Houses of Parliaments and stabbing a police officer being shot down. The GBP/USD pair bottomed at 1.2423 with the news, and slowly moved back higher to match its opening level. From a technical point of view, the risk remains towards the downside, given that the pair held above 1.2425, a major Fibonacci support, while in the 4 hours chart the price bounced sharply after flirting with a bullish 20 SMA. In the same chart, technical indicators have resumed their advances within positive territory, now nearing overbought territory, with scope to extend up to 1.2540, on a break above 1.2505, the daily high.

Support levels: 1.2460 1.2425 1.2390

Resistance levels: 1.2505 1.2540 1.2585

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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