GBP/USD downside contained at 1.3320, returns above 1.3350


  • GBP/USD’s rejection from 1.3400 finds support at 1.3320.
  • Pound rally falters on Brexit uncertainty.
  • GBP/USD is now focusing on 1.3480 – UOB.

The sterling has been rejected on its first attempt to break 1.3400 on Thursday’s early trading and the pair retreated to session lows at 1.3320 where it has found support to return to the mid-range of 1.3300.

Brexit uncertainty hurts the GBP

The pound is losing ground on a thinned Thanksgiving session, retreating from 12-week highs after having rallied in eight out of the last nine trading days. The lack of progress on the Brexit negotiations is undermining GBP bulls while the talks continue in an attempt to bring positions closer in key issues.

The positive sentiment witnessed over the previous weeks was hit on Wednesday after the European Commission president, Ursula van der Leyden, warned that the trade deal is far from certain as UK’s position in the fishing issue us blocking the agreement.

Today, UK finance minister, Rishi Sunak, affirmed that he was confident and hopeful about a post-Brexit deal, although the impact on the pound was muted. The market is awaiting more solid reasons to back the GBP uptrend.

GBP/USD focusing on 1.3480 – UOB

The FX Analysis team at UOB remains bullish on the pair, expecting further rally towards 1.3480: “GBP rose to 1.3394 yesterday before closing at 1.3386 (+0.19%). Momentum is beginning to improve and a break of 1.3400 would shift the focus to the year-to-date high at 1.3481 (there is a minor resistance at 1.3440). All in, the outlook for GBP is deemed as positive as long as it does not move below 1.3280 (‘strong support’ level previously at 1.3250).”

Technical levels to watch

GBP/USD

Overview
Today last price 1.3357
Today Daily Change -0.0035
Today Daily Change % -0.26
Today daily open 1.3392
 
Trends
Daily SMA20 1.317
Daily SMA50 1.3026
Daily SMA100 1.3006
Daily SMA200 1.2725
 
Levels
Previous Daily High 1.3394
Previous Daily Low 1.3305
Previous Weekly High 1.3312
Previous Weekly Low 1.3166
Previous Monthly High 1.3177
Previous Monthly Low 1.282
Daily Fibonacci 38.2% 1.336
Daily Fibonacci 61.8% 1.3339
Daily Pivot Point S1 1.3333
Daily Pivot Point S2 1.3274
Daily Pivot Point S3 1.3244
Daily Pivot Point R1 1.3422
Daily Pivot Point R2 1.3452
Daily Pivot Point R3 1.3511

 

 

 

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