GBP / USD Current Price: 1.3145
- UK CBI Distributive Trade Survey realized sales contracted to -6% in August.
- Brexit negotiations stalled with just over a month to reach a deal.
- GBP / USD has gained ground but its bullish strength is quite limited.
GBP / USD is higher in the range on Tuesday, retaining some intraday gains despite disappointing UK data and sour market mood in the last trading session of the day. The pair hit an intraday high of 1.3170 on market optimism. Investors ignored the CBI’s August retail trade survey of realized sales, which contracted to -6% from 8% the month before. The pound is unaffected by the lack of progress in Brexit negotiations, with just over a month to reach a deal.
The UK will not release relevant macroeconomic data for the next 24 hours, although the BOE’s Haldane is expected to deliver a speech on Wednesday.
GBP / USD Short Term Technical Outlook
GBP / USD is trading in the 1.3140 price zone with the latest rally falling short of supporting further gains to come. In the 4 hour chart the pair is hovering around a directionless 20 SMA while a few pips above an equally flat 100 SMA. Technical indicators have recovered from daily lows, with momentum entering positive territory and the RSI already stable around 54, indicating limited buying interest.
Support levels: 1.3090 1.3050 1.3010
Resistance levels: 1.3170 1.3215 1.3250
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