1.Technical View
Technically, the daily chart shows that technical indicators have lost upward strength but hold within positive territory, the Momentum directionless and the RSI heading lower at 53, while the price holds above a horizontal 20 DMA, all of which limits the downside. The key is the 1.2880/90 region, where the pair has the 61.8% retracement of the 2016/18 rally, as if it gives up again, the pair will enter bearish territory.
Support levels: 1.2935 1.2890 1.2850
Resistance levels: 1.3005 1.3045 1.3085
2.Fundamental view
The GBP/USD fell for a second consecutive day but closed the week with gains at 1.2957, as hopes for an ordered Brexit kept the Sterling supported all through the week. EU Chief Negotiator Barnier spoke to a German newspaper over the weekend, saying that, a customs union between the EU and the UK is still possible, and would make things much easier but also added: "I advise industry to make their supply chains Brexit-proof.” He also said that negotiations don't need more time, that what is needed now are political decisions. UK PM May was also on the wires, saying that she won't be pushed in compromises that are not in the national interest, sticking to the Chequers agreement.
My overall opinion on this pair: it will bounce a little bit, but for future trend, I am waiting for the new candlestick pattern formation.
Technically, the daily chart shows that technical indicators have lost upward strength but hold within positive territory, the Momentum directionless and the RSI heading lower at 53, while the price holds above a horizontal 20 DMA, all of which limits the downside. The key is the 1.2880/90 region, where the pair has the 61.8% retracement of the 2016/18 rally, as if it gives up again, the pair will enter bearish territory.
Support levels: 1.2935 1.2890 1.2850
Resistance levels: 1.3005 1.3045 1.3085
2.Fundamental view
The GBP/USD fell for a second consecutive day but closed the week with gains at 1.2957, as hopes for an ordered Brexit kept the Sterling supported all through the week. EU Chief Negotiator Barnier spoke to a German newspaper over the weekend, saying that, a customs union between the EU and the UK is still possible, and would make things much easier but also added: "I advise industry to make their supply chains Brexit-proof.” He also said that negotiations don't need more time, that what is needed now are political decisions. UK PM May was also on the wires, saying that she won't be pushed in compromises that are not in the national interest, sticking to the Chequers agreement.
My overall opinion on this pair: it will bounce a little bit, but for future trend, I am waiting for the new candlestick pattern formation.
Comment:
From the daily chart, It reaches the resistance level, it will go up.
