GBP/USD stuck in the middle with Brexit near 1.29

Sterling holding steady after catching a ride on uplifted Brexit hopes.
Little UK data remains on the week ahead of another US NFP Friday.

Joshua Gibson FXStreet

The GBP/USD pair is holding steady just above the 1.2900 level ahead of Thursday's London market session.

Hopes for a soft-landing Brexit leapt forward yesterday as Germany and the UK both expressed a willingness to drop key requirements from their Brexit negotiations, and hopes of averting a messy exit are on the rise, dragging the Sterling from 1.2785 all the way to 1.2982, and the major pair is now holding steady as traders head into the latter end of the week.

Thursday is a thin showing for the Pound on the economic calendar, and traders will be looking towards the upcoming US session, where Initial Jobless Claims (forecast 214 thousand, last 213 thousand) at 12:30 GMT and Markit PMIs for August at 13:45 GMT (forecast no change) will be dominating with a lack of top-tier data on the docket. Friday will also be bringing the latest US Non-Farm Payrolls showing, and traders will be geared up for a busy Friday on the US schedule with the UK devoid of meaningful data for the rest of the week.

GBPUSD levels to watch

The Sterling-Dollar chart appears to be hung up in the middle with yesterday's bullish pop failing to spur significant momentum, and as FXStreet's own Valeria Bednarik noted, "The 4 hours chart shows that the pair failed to sustain gains beyond its 200 EMA, but trades above a bearish 20 SMA that converges with the mentioned Fibonacci support. Technical indicators in the mentioned chart entered positive ground but lost upward strength, indicating decreasing buying interest. The risk toward the downside will increase on a clear break below the mentioned 1.2890 support."

Support levels: 1.2890 1.2845 1.2800

Resistance levels: 1.2930 1.2980 1.3010

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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