GBP/USD: bears pause, but don't give up

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3341

Absence of progress in Brexit negotiation undermines Pound.
Downward potential strong ahead of US employment data.

The Pound negative momentum persists this Thursday, leading the GBP/USD pair to trade as low as 1.3319. An early peak to 1.3422 was quickly reverted, with the pair trading some 20 pips above the mentioned low. Brexit jitters continue undermining the UK currency, after a spokesman from PM May said that an agreement is closed, but more work needs to be done to secure an agreement on the Irish Border issue. In the data front, the lender Halifax report showed that UK house prices roses by 3.9% in the year to November, below previous 4.5% advance, although monthly basis, prices surged by 0.5% beating expectations. Ahead of US weekly unemployment claims' report, the pair is trying to recover above 1.3345, a major static resistance as the level stands for the 61.8% retracement of the latest bullish run. In the 4 hours chart, the price topped at a bearish 20 SMA while technical indicators have recovered modestly within negative territory, but are far from suggesting an upcoming recovery. These days, GBP/USD direction solely depends on Brexit, yet after breaking the mentioned Fibonacci support, the risk clearly leans towards the downside.

Support levels: 1.3310 1.3280 1.3250

Resistance levels: 1.3345 1.3385 1.3430

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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