GBP/USD analysis: watch for a break below 1.2624

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2673

The GBP/USD pair advanced up to 1.2774, a fresh 2-month high, but reversed course in the US afternoon, falling down to 1.2656, as the dollar recovered part of its shine during the American afternoon. There were no macroeconomic releases in the UK, but the Supreme Court reached the day two of Brexit hearings, after the Government appealed the court's previous decision that the government needs parliament’s approval to trigger Article 50 and begin the process of leaving the EU. On Wednesday, the NIESR GDP estimate for the three months to November will take center stage, although manufacturing and industrial output for November will be released earlier in the day. From a technical point of view, the pair has erased all of its Monday's gains, entering in negative territory for the week, and poised to extend its slide according to the 4 hours chart, as the price is breaking below its 20 SMA, while technical indicators head sharply lower and are about to enter bearish territory. The weekly low was set on Monday at 1.2624, the level to break to confirm a bearish extension this Wednesday.

Support levels: 1.2625 1.2480 1.2445

Resistance levels: 1.2720 1.2750 1.2795

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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