GBP/USD is near support

Author: FBS | Category: News

The pound is under pressure

The pound is under pressure

GBP/USD formed a lower high at the start of this month, pressured by the strong resistance in the 1.30 area. Not far above it, there are the declining 100- and 200-week MAs.

This zone looks even more like a hard obstacle if we remember about the ongoing political uncertainty in the UK and the recent hints from the Bank of England that it's ready to cut rates in a no-deal Brexit scenario.

The Awesome Oscillator is declining on the D1. The decline below support at 1.28 will confirm a "double top" and lead the price down to 1.2730 (50-week MA) and 1.2700 (200-day MA). There will likely be demand for the pound at these levels limiting the further decline.

The short-term downtrend creates resistance around 1.2850 and 1.2880 (50- and 100-period MAs on the H4). An increase above the latter is needed to allow GBP/USD retest 1.2950 (resistance line connecting October and November highs). 

GBP chart

This post is written and submitted by FBS Markets for informational purposes only. In no way shall it be interpreted or construed to create any warranties of any kind, including an offer to buy or sell any currencies or other instruments.

The views and ideas shared in this article are deemed reliable and based on the most up-to-date and trustworthy sources. However, the company does not take any responsibility for accuracy and completeness of the information, and the views expressed in the article may be subject to change without prior notice. 


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