GBP/USD Forecast: sellers to take advantage of spikes

Valeria Bednarik FXStreet

The GBP/USD pair managed to extend its weekly advance by a few pips this Friday, up to 1.2915 in the European morning and hovering around 1.2900, backed by broad dollar's weakness. Risk aversion took its toll over currencies, with the American currency down amid strong demand for safe havens CHF, JPY and gold. Speculative interest, however, hesitates to rush into the Pound, mostly disappointed by speculation that the BOE will maintain the monetary policy status quo for longer than expected.

The macroeconomic calendar of the UK will remain empty today, while the US will offer a sentiment index and a Fed's speaker by the end of the London session, which will leave the pair trading on sentiment, limiting the upward potential of the high-yielding Pound.

From a technical point of view, and according to the 4 hours chart, the pair is standing a few pips above a bearish 20 SMA, while technical indicators aim higher within neutral territory, supporting some short-term upward extension on a break above 1.2920, the immediate resistance, and towards 1.2965.

The mentioned 20 SMA is the immediate support at 1.2880, with a downward acceleration through the level favoring a test of the weekly low of 1.2841, en route to 1.2790.

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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