GBP/USD: Heavy, still holds above 1.32 amid Brexit concerns

THIS WEEK IN THE FOREX MARKETS

GBP/USD: Heavy, still holds above 1.32 amid Brexit concerns

GBP/USD stalls its bounce and drops back below 1.3200. The cable remains heavily offered amid intensifying no-deal Brexit fears. Also, weighing on the pair could be the US dollar’s sustained run-up and a lack of major data/events due on the cards.

From a technical perspective, some follow-through selling below Friday’s swing low, around the 1.3175 region, will be seen as a fresh trigger for bearish traders and accelerate the slide towards mid-1.3100s. The downward trajectory could further get extended to the 1.3100 mark before bears eventually drag the pair towards the next major support near the 1.3050-40 horizontal zone.

On the flip side, the 1.3255-65 region now seems to have emerged as immediate strong resistance. That said, a sustained move beyond might trigger a short-covering move and push the pair back towards the 1.3300 round-figure mark. A subsequent move up might negate any near-term bearish bias and assist the pair to aim back to the recent daily closing highs resistance near the 1.3385 region. Read more...