GBP/USD: supported by soft US data

GBP/USD Current price: 1.3072

The GBP/USD pair hovers a handful of pips below the 1.3100 level, having barely correcting the extreme overbought conditions reached last Friday. The Pound benefited from poor US data, with the pair triggering stops right above former yearly high of 1.3047, now the immediate support. In the data front, the UK released the Rightmove house price index at the beginning of the day, which showed that prices have risen 0.1% this month, and 2.8% per from a year earlier, better than the 04% decline in June, although the impact over the pair was inexistent. The 4 hours chart shows that the price continues developing far above a bullish 20 SMA, whilst technical indicators are turning back north near overbought levels, with limited directional strength, but favoring the upside anyway, as the early downward corrective movement stalled well above the 23.6% retracement of the latest bullish run at 1.3040. Below this last, the pair has scope to extend its downward corrective movement towards the 1.3000 threshold, while above 1.1315, an extension up to 1.3160 becomes more likely, en route to 1.3200.

Support levels: 1.3040 1.3000 1.2965

Resistance levels: 1.3115 1.3160 1.3200

View Live Chart for the GBP/USD

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