GBP/USD Forecast: short term recovery could extend up to 1.3060

Valeria Bednarik FXStreet

The Pound managed to recover some ground, once again, going against the crowd when compared to the greenback, as the GBP/USD pair trades around 1.3000 in a quiet London morning. There were no macroeconomic releases in the UK, and headlines on Brexit showed that, after four days of negotiations, ministers are still at square one. The main disputes between the EU and the UK are citizens' rights and the so-called divorce bill, said to be of around €100 billion. The US calendar will also remain empty this Friday, with only Baker Hughes' rig count to be released by the end of the European session.

The ongoing advance seems purely driven by dollar's broad weakness, and from a technical point of view, the risk remains towards the downside, as in the 4 hours chart, the price remains below a bearish 20 SMA, this last providing an immediate resistance around 1.3020, whilst technical indicators hold within negative territory, lacking directional strength. If the pair manages extend beyond the mentioned level, the upward corrective move can extend up to the 1.3060 region, where selling interest will likely re-surge. Below 1.2960, on the other hand, the risk turns towards the downside with the next supports for today at 1.2930, the weekly low, and 1.2890.

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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