GBP/USD analysis: House of Lords' decision will set the tone

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2454

The GBP/USD pair closed at 1.2454, little changed for a third consecutive week. The pair retreated from a weekly high of 1.2569, bounded in its usual range, despite positive news coming from the UK, as according to the British Banks' Association, mortgage approvals surged to their highest in a year in January, up to 44,657 mortgages in January, up from 43,581 in December. During the upcoming days, the House of Lords will discuss amendments for the Brexit bill particularly focused on guarantee the rights of EU citizens to stay in the UK after Brexit and to ensure the Parliament has a binding vote on the final departure deal before it's too late for it to be changed, an effective veto. If PM Theresa May is defeated by parliamentarians the Pound will likely come under selling pressure. Technically, the pair remains neutral, although with an increasing bearish potential, as the price settled below a bearish 20 SMA, whilst technical indicators have turned modestly lower around their mid-lines. In the 4 hours chart the neutral stance persists, with the price moving back and forth around its 20 SMA and technical indicators heading nowhere around their mid-lines. The pair has been finding buying interest around 1.2380, while February low converges with the 50% retracement of the latest bullish run at 1.2345, the level to break to confirm a bearish breakout.

Support levels: 1.2430 1.2380 1.2345

Resistance levels: 1.2485 1.2530 1.2565

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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