GBP/USD: Range bound around 1.3800 amid softer USD, Brexit jitters

GBP/USD is trading directionless around 1.3800
Brexit concerns offset the US dollar’s weakness amid mixed markets.
The cable remains trapped between 21 and 200-DMAs, with bearish RSI.

Dhwani Mehta FXStreet

GBP/USD is alternating between gains and losses around the 1.3800 level, looking vulnerable amid looming Brexit concerns.

Although, the GBP bulls continue to fight for control, as the US dollar remains on the defensive amid mixed clues on the Fed’s next policy move.

On the latest update, post-Brexit trade frictions have "significantly altered" freight traffic between Ireland and Britain and sparked a steep rise in volumes to and from Ireland and other European Union members, Reuters reports, citing an Irish government agency report.

Meanwhile, the European Union (EU) citizens have missed the deadline to apply to stay in the UK, which could trigger a fresh Brexit backlash between the Kingdom and Brussels.

Looking ahead, the US dollar’s price action, Brexit updates and covid stats will continue to influence the major ahead of the Preliminary Michigan Consumer Sentiment data.

GBP/USD technical outlook

GBP/USD remains trapped in a narrow between the 21-Daily Moving Average (DMA) at 1.3829 on the upside while the losses appear capped by the ascending 200-DMA at 1.3777.

However, with the 14-day Relative Strength Index (RSI) still hovering below the midline, the odds for a potential downside seem higher.

A breach of the 200-DMA support could call for a test of the $1.3750 demand zone.

Alternatively, acceptance above the 21-DMA could reinforce recovery towards the downward-sloping 50-DMA at 1.3887.

GBP/USD daily chart

GBP/USD additional levels to watch

GBP/USD

Overview
Today last price	1.3805
Today Daily Change	-0.0001
Today Daily Change %	-0.01
Today daily open	1.3808

Trends
Daily SMA20	1.3831
Daily SMA50	1.3895
Daily SMA100	1.3926
Daily SMA200	1.3775

Levels
Previous Daily High	1.3879
Previous Daily Low	1.3795
Previous Weekly High	1.3958
Previous Weekly Low	1.3861
Previous Monthly High	1.3984
Previous Monthly Low	1.3572
Daily Fibonacci 38.2%	1.3827
Daily Fibonacci 61.8%	1.3847
Daily Pivot Point S1	1.3775
Daily Pivot Point S2	1.3743
Daily Pivot Point S3	1.3692
Daily Pivot Point R1	1.3859
Daily Pivot Point R2	1.3911
Daily Pivot Point R3	1.3943

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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