GBP/USD a little higher so far on the day but still playing within the near-term range
GBP/USD is up 0.3% today but keeps within near-term technical levels
The pair is trading a little higher around 1.3150-60 levels in European morning trade, but that isn’t amounting to any major change in the near-term technical picture for now.
The low today hit 1.3109 earlier but that saw buyers step in to defend the 200-hour MA (blue line) closer to the 1.3100 level. For now, that is keeping the downside limited in the pair as we look towards the closing stages of the week.
Meanwhile, topside resistance is seen closer to 1.3200 with the 100-hour MA (red line) @ 1.3194 also acting as a key near-term resistance level.
As such, the pair continues to play within the near-term range as defined above after the shove lower below the 1.3200 handle.
Looking ahead, while the dollar/risk side of the equation will continue to be a key factor to watch, do be mindful of potential Brexit headlines that may come about as well.
In the UK, Boris Johnson’s advisor, Dominic Cummings, is set to resign at the end of the year and that removes one of the hard Brexiteers in the government. But UK lawmakers insisted that it doesn’t change anything as Brexit is set to be done within the next 7 weeks.
Negotiations are still ongoing in London but aren’t expected to make a breakthrough and the “deadline” is now pushed to the end of next week. That said, we may hear reports/rumours on how things are playing out in the coming days so just be wary of that.
Either way, the near-term technical levels above will offer some help in trying to gauge the bias in the pair on a break on either side depending on the market narrative.
Source: Technical analysis