GBP/USD: EUR's demand caps Pound´s gains

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2762

The GBP/USD pair extended its advance up to 1.2772, helped by broad dollar's weakness and BOE's Carney statement following the release of the Financial Stability report, asking banks to raise their capital requirements amid growth in the local economy and external risks. The pair holds near its highs ahead of the US opening, but seems reluctant to extend its advance ahead of Fed's Yellen speech later today. Furthermore, a strong advance in the EUR/GBP amid EUR's demand limits gains at the time being.

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In the meantime, the 4 hours chart shows that the price has continued to find intraday support around a bullish 20 SMA, now at 1,2720, while the RSI indicator holds around 61, with limited upward strength, and the Momentum heads nowhere around its 100 level, indicating diminishing buying interest as the price near 1.2800. The 200 EMA in the mentioned chart stands at 1.2790, providing an immediate dynamic resistance, with a clear extension and a candle opening beyond it required to confirm further gains ahead.

Support levels: 1.2735 1.2690 1.2665

Resistance levels: 1.2790 1.2830 1.2885

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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