GBP/USD back into 1.33 as Brexit fears outweigh risk appetite

Sterling couldn't find a leg up in the early week as Brexit fears hamper the Pound.
Mid-tier data populates the release schedule this week.

Joshua Gibson FXStreet

The GBP/USD is trading flat for Tuesday, testing around the 1.3300 major handle ahead of the London markets.

Overall market sentiment swung to the risk-hungry side on Monday, but the Sterling still stumbled against the Greenback as Brexit concerns came back to the forefront, with the Ireland border issue still unresolved and the post-Brexit landscape continuing to be a foggy mess of unanswered questions.

The GBP halted Monday's slide at the 1.3300 key level, and Tuesday brings a fresh chance for Sterling bulls to resume bidding up, with UK Markit Services PMI for May at 08:30 GMT, forecast to tick up from 52.8 to 53.0. It's a moderate week overall for the GBP/USD this week on the macroeconomic calendar, and risk sentiment is going to be the key decider of volatility and direction looking forward.

GBP/USD levels to watch

FXStreet Chief Analyst Valeria Bednarik on the Sterling's technical stance heading into Tuesday's London markets: "the GBP/USD pair 4 hours' chart presents a neutral stance heading into the Asian session, as the pair is now struggling around a flat 20 SMA, while technical indicators have pulled back from near overbought readings, the Momentum now heading nowhere around its 100 level, but the RSI maintaining the downward slope at 46, leaning the scale toward the downside for the upcoming sessions."

Support levels: 1.3290 1.3245 1.3200

Resistance levels: 1.3375 1.3420 1.3460

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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