GBP/USD analysis: mild boost from Brexit news didn't change negative sentiment toward Pound
GBP/USD Current price: 1.3138
- UK PM May said that she would now lead negotiations with the EU.
- UK manufacturing activity continued expanding, but investment disappointed.
The GBP/USD pair trimmed Monday's losses and returned to the 1.3140 region, as the Pound found support on positive UK data and, for a change, in Brexit headlines. The UK CBI Industrial Trends survey revealed that new orders continued to expand with the index at 11 vs. the expected 9, although according to the same report, investment disappointed. In the Brexit front, Prime Minister Theresa May said she would now lead negotiations with the EU, while the Brexit department will take care of preparing for Britain's departure from the bloc. Brexit Secretary Dominic Raab, who early said that the UK must prepare for all Brexit eventualities, will serve as May's deputy in future talks. The pair is flat weekly basis, as investors don't dare to push the Pound much higher, considering the soft macroeconomic data released as of late, and decreasing hopes for an August rate hike. This Wednesday, the UK will release minor data, the June BBA Mortgage Approvals and the CBI survey on realized sales. The 4 hours chart shows that the pair met buyers in an approach to a mild bullish 20 SMA, but also that it holds below a bearish 200 EMA, while technical indicators turned sharply lower, now nearing their mid-lines, not enough to confirm a bearish extension but clearly indicating limited buying interest.
Support levels: 1.3080 1.3035 1.3000
Resistance levels: 1.3155 1.3195 1.3240
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.
