GBP/USD: Range-play to continue amid lack of fresh drivers

Dhwani Mehta FXStreet

The GBP/USD pair extended its overnight trend into Asia and remained better offered amid a minor-recovery staged by US dollar across the board and risk-off market profile.

GBP/USD in search of fresh direction

The spot is seen moving back and forth in a 25-pips extremely slim range, with risk appearing to the downside amid lingering uncertainty over the Brexit deal, as the UK and EU still remain at odds over citizens' rights and the amount the UK will pay to leave the bloc, at the end of the second week of Brexit talks.

Moreover, negative Asian equities combined with weaker oil prices further fuel risk-off sentiment, triggered by fresh US political headlines reported in the US last session, after Special Counsel Robert Mueller expanded the probe to look into a broad range of transactions involving Trump’s businesses as well as those of his associates.

In the day ahead, the US dollar could come under fresh selling pressure versus its main peers, once the European trading gets underway, offering some temporary respite to the pair.

However, any upside could be short-lived amid a lack of fresh fundamental drivers due on the cards late today, as the dust settles over yesterday volatile session.

UK retail sales rebound sharply in June, a Big beat on expectations

GBP/USD levels to consider

Valeria Bednarik, Chief Analyst at FXStreet noted, “ In the 4 hours chart, technical readings support a bearish continuation for the upcoming sessions, as the price is below a bearish 20 SMA, while technical indicators hold within negative territory, with the RSI now heading south around 42. Below the mentioned daily low, the pair will have scope to extend its decline down to 1.2811, last week low. Support levels: 1.2930 1.2880 1.2840 Resistance levels: 1.3000 1.3030 1.3075.”

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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