GBP/USD Forecast: short term bullish above 1.2820

Valeria Bednarik FXStreet

The GBP/USD pair trades a few pips above the 1.2800 level, and nearing last week high of 1.2817, as the EU and Britain start formal talks to split. The idea is to set the terms on which the UK is leaving the Union, something that won't be solve in this first talks. It will a long, rough path, particularly for the kingdom, as PM May's negotiation power was weakened by the result of the latest election. Hopes that she will have to give up on her "hard-Brexit" stance, and will have to accept a softer one, backed the Pound at the beginning of last week, but as talks start, investors took a step aside.

The pair advanced with London's opening, holding near the mentioned high and with a positive stance in the short term, as the price held above a modestly bullish 20 SMA, whilst technical indicators advanced within positive territory, maintaining strong bullish slopes. The 200 EMA in the mentioned level stands at 1.2820, the level to break to confirm additional gains for this Monday, up to the 1.2850/60 region. Below 1.2810 on the other hand, the pair has scope to test Friday's low of 1.2751, with a directional breakout being unlikely for this first day of the week.

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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