GBP/USD remains near 1.3300, consolidates weekly losses

GBP/USD rebounds from 2-week lows but remains under 1.3300.
A stronger US dollar boosted weekly gains amid Fed rate hike expectations and Brexit concerns.

Matías Salord FXStreet

Cable is rising modestly on Friday, recovering ground after yesterday’s slide. GBP/USD has been moving in a small range, still unable to recover the 1.3300 handle, between 1.3295 and 1.3260.

Rebounds but still sharply lower

The pair bottomed today at 1.3208, a 2-week low located slightly above year-to-date lows. It rebounded and during the US session hit at 1.3297 a fresh daily high.

Over the last hours the pair recovered a hundred pips but on a weekly basis is still down a hundred pips and headed toward the lowest close weekly close since November.

The combination of a stronger US dollar, supported by US data and Fed rate hike expectation and Brexit concerns pushed the pair back near 2018 lows. The area around 1.3200 capped the downside but the bearish pressure still persists. All the advance of the pound during the last two weeks was lost in a few hours.

Next week, will be the Bank of England meeting. Is one of the meetings with no Inflation Report so not much impact is expected. The political developments in the UK and the US are likely to be followed by market participants.

Levels to watch

To the upside, resistance levels might be located at 1.3305, 1.3350 (20-day moving average) and 1.380/90. On the flip side, supports area seen at 1.3245, 1.3200/10 (2018 low) and 1.3155.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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