- GBP/USD is shaping up for an extension of the recent upside since carving out a double bottom low.
- GBP/USD bulls are spurred on by talks of an extension of Article 50 and soft Brexit hopes.
- GBP/USD is currently trading at 1.3068, between a range of 1.3050 and 1.3076.
GBP/USD news is centred around Brexit, a theme which is driving volume out of the currency (banks decreasing trading limits on traders) as headlines and sentiment, thus price direction, flips on its head from one session to the next – (Less liquidity could equate to even more volatile moves).
The latest news is suggesting that an extension of Article 50 is a likely scenario – Brexit could be delayed until 2021 under plans being explored by the EU’s most senior officials – The Guardian, citing EU sources. The BBC has cited sources saying that PM May could signal that she is taking a no deal Brexit off the table this week.
1.3300 in scope
Meanwhile, GBP/USD has been carving out a slight bearish tilt on the hourly charts since topping out at the 1.31 handle and moving in on the 1.30 figure before rebounding to a lower high and forming a descending channel. However, on a wider scope, zooming out on the charts, we have seen a major higher low on the monthly charts at 1.2360 within a developing uptrend. On the daily chart, the daily pullback was supported at the top of the cloud and keeps 1.33 in scope.
More GBP/USD levels
Valeria Bednarik, Chief Analyst at FXStreet explained that the pair closed the week with gains after falling the previous three, at around the 61.8% retracement of that slump:
“The technical perspective is positive according to the daily chart, as the pair settled above its 200 EMA and its 20 SMA, although the larger lacks directional strength and the shorter one maintains a modest downward slope. Indicators in the mentioned chart are heading modestly higher, the Momentum in neutral territory and the RSI at 57, without strength enough to confirm an upcoming advance. In the shorter term, and according to the 4 hours chart, the pair is neutral-to-bullish, as technical indicators lost their upward strength after entering positive territory, while the price settled just a couple of pips above a bullish 20 SMA.”
Share
