GBP/USD Forecast: back above 1.3000

Valeria Bednarik FXStreet

European trades have chosen once again to sell the greenback, with the GBP/USD pair regaining the 1.3000 level, after yesterday's sudden drop. The decline, that ripped off over 100 pips in a matter of seconds, sent the pair to as low as 1.2889, where buying interest quickly resurged. The UK macroeconomic calendar has nothing to offer this Friday, whilst the US one will also be light. Speculative interest may take some profits out of the table ahead of the close, but the ongoing dollar's weakness will likely persist, with the pair set to rally beyond 1.3100 next week.

From a technical point of view, the 4 hours chart shows that the pair bounced from a still bullish 20 SMA, whilst technical indicators resumed their advance after a short-period of consolidation around their mid-lines, heading north but below previous weekly highs. The pair has a strong static resistance around 1.3060, the level to surpass to confirm additional rallies, initially towards 1.3100.

The immediate support on the other hand comes at 1.2970, with a break below it favoring a bearish extension towards the 1.2900/30 price zone.

View live chart of 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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