GBP/USD slips back into 1.3250 ahead of the London market open

The week's bullish start is beginning to look shaky, the GBP/USD lacks confident momentum.
Little of note on the caldendar today, traders are focused solely on Thursday's BoE showing.

Joshua Gibson FXStreet

The GBP/USD bumped higher in early Tuesday action, but the lift appears to be ending as the Sterling is beginning to peek down lower once again, with the pair testing near 1.3250 ahead of the London market open.

Tuesday is a thinned-out showing for the GBP, and overall market sentiment is definitely on the cautious side after the US announced they were seeking further retaliatory tariffs on China, and global markets chunked lower through Tuesday's Asia session.

The big event for the GBP this week is the Bank of England's (BoE) rate decision, due on Thursday, and traders are likely being forced to the sidelines while they await further information from the UK's central bank, especially after the House of Lords pulled a surprise victory at the last minute on the current Brexit voting, delivering a loss to Prime Minister Theresa May's current plans. The good news is that the House of Lords' win reduces the risk of a hard-Brexit scenario, the downside is this means the UK parliament will be pushing itself into Brexit negotiations, further complicating the PM's already tenuous position with EU leaders in Brussels.

GBP/USD Technical Analysis

Early Tuesday's quick pop appears to be over, and the GBP is looking at a bit of a bearish twist heading into the upcoming London market. A devoid schedule will be seeing broader markets controlling market flows, and the GBP/USD pair's technical support for the week could easily face renewed pressure.

GBP/USD Chart, 1-Hour

Spot rate: 1.3250
Relative change: -0.10%
High: 1.3272
Low: 1.3243

Trend: Bearish

Support 1: 1.3243 (current day low)
Support 2: 1.3211 (1-week low)
Support 3: 1.3177 (S1 1-week pivot)

Resistance 1: 1.3301 (1-week 38.2% Fibo level; major technical handle
Resistance 2: 1.3356 (1-week 61.8% Fibo level)
Resistance 3: 1.3446 )1-week high)

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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