Direction: Bullish
Suggestion:Buy at 1.3000, target at 1.3072, stop at 1.2883.
The GBP/USD has found itself chained to the 1.3000 major handle as Brexit headlines continue to drag the Sterling up and down the charts. A tentative Brexit deal appears to be in the works, but plenty of legwork remains in the chute.
The pair trades at around 1.2960, and the 4 hours chart show that is back above a bearish 20 SMA and now trying to surpass the 200 EMA, while technical indicators diverge from each other, the Momentum heading lower and the RSI modestly higher. Volatility around the GBP/USD is directly correlated to Brexit headlines, overshadowing technical readings, and therefore making it to risky to trade at the current levels. Either below 1.2826 or above 1.3046, the pair could seem some directional strength, depending on how the Brexit deal develops.
Support levels: 1.2860 1.2825 1.2770
Resistance levels: 1.2955 1.3000 1.3045
Suggestion:Buy at 1.3000, target at 1.3072, stop at 1.2883.
The GBP/USD has found itself chained to the 1.3000 major handle as Brexit headlines continue to drag the Sterling up and down the charts. A tentative Brexit deal appears to be in the works, but plenty of legwork remains in the chute.
The pair trades at around 1.2960, and the 4 hours chart show that is back above a bearish 20 SMA and now trying to surpass the 200 EMA, while technical indicators diverge from each other, the Momentum heading lower and the RSI modestly higher. Volatility around the GBP/USD is directly correlated to Brexit headlines, overshadowing technical readings, and therefore making it to risky to trade at the current levels. Either below 1.2826 or above 1.3046, the pair could seem some directional strength, depending on how the Brexit deal develops.
Support levels: 1.2860 1.2825 1.2770
Resistance levels: 1.2955 1.3000 1.3045