GBP/USD Forecast: Brexit-related hopes lifted the Pound

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2339

The UK CBI Distributive Trades Survey on realized sales declined by 50% in May.
Rumours related to progress in talks between the EU and the UK lifted the Pound.
GBP/USD is holding on to gains, further advances expected once above 1.2370.

The GBP/USD pair run to 1.2362, its highest in two weeks, as the Pound got boosted by rumours about progress in Brexit talks. According to the latest headlines, the EU is willing to shift its stance on fisheries when talks resume next week, potentially opening the doors for other concessions between both parts. The UK released the CBI Distributive Trades Survey on realized sales, which declined by 50% in May, meeting the market’s expectations. Market’s optimism and rallying equities provided further support to the pair. The UK calendar has nothing to offer this Wednesday.

GBP/USD short-term technical outlook

The GBP/USD pair retreated just modestly from the mentioned high to settle in the 1.2330 price zone. The 4-hour chart shows that the pair is correcting overbought conditions, although with the risk still skewed to the upside. Technical indicators have lost bullish strength but hold around their daily highs, while the pair is well above a now bullish 20 SMA, while also above the 100 SMA. The 200 SMA, however, capped the upside, providing dynamic resistance at around 1.2370.

Support levels: 1.2305 1.2260 1.2220

Resistance levels: 1.2370 1.2415 1.2450

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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