GBP/USD can't escape 1.35's pull, Brexit on-again, off-again continues

Sterling remains suspended in May's range, unmoved as Brexit headlines continue to vex traders.
The week is set to cap off a lack of movement, but next week brings CPI figures.

Joshua Gibson FXStreet

The GBP/USD is still trading into 1.3500 as Friday's London market session rounds the corner, and the Sterling is set wrap up a rough week of trading against the US Dollar.

The Sterling caught some buyers at the beginning of the week afer news broke that the UK was prepared to remain in the EU customs union post-Brexit beyond 2021 if necessary to avoid a 'hard-Brexit' scenario, but UK Prime Minister Theresa May talked down the news, stating that the UK would certainly be leaving the customs union and the EU.

Earnings figures earlier in the week failed to inspire confidence in the GBP, and an otherwise quiet week with little economic data on the docket has left the GBP/USD to cycle within May's range around the 1.3500 major handle, and traders will have to look forward to Wednesday's CPI figures next week for inspiration.

GBP/USD levels to watch

FXStreet's Chief Analyst, Valeria Bednarik, took note of the GBP/USD 's range, and points out that indicators are still pointing towards a bearish resolution to the current technical stance: "the pair continues trading inside the well-limited range that extends since early this month, with no clear short-term directional clues, given that in the 4 hours chart, it holds around a marginally bearish 20 SMA while technical indicators remain within negative territory. The risk is leaned to the downside, yet a break below 1.3450 the low set this week is required to anticipate additional declines ahead."

Support levels: 1.3490 1.3450 1.3410

Resistance levels: 1.3520 1.3570 1.3610

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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