The pair took a sharp reversal up today, but upside seems capped under 1.2800 level. 1.28 is a critical resistance level, as long as the pair has been kept below this level, the bearish trend would be still intact.
The pair has gained more than 250 pips and now trading above 1.30 level after news about PM May struck a deal with the EU on financial services. GBP/Usd is consolidating its gains but there is no indication of changing direction, next target is expected to be at 1.31 level.
GBP/USD: The dollar traded without sharp fluctuations on Friday in anticipation of US labor statistics, moving away from a maximum of 16 months in the course of previous trades, as investors again switched to risky assets. The pound sterling held the advantage after the Bank of England left rates unchanged on Thursday and indicated a possible acceleration of rates in the future if Brexit runs smoothly. The pound sterling fell 0.02 percent to $ 1.2998, but held the bulk of the gains after a rise of 1.8 percent on Thursday, the maximum one-day increase since April 2017.
The British pound fell against the US dollar on Friday. By the close of US trading, GBP / USD was trading at 1.2969, losing 0.34%. I believe that support is now at around 1.2696, Tuesday’s low, and resistance is likely at 1.3041, Friday's trading high.
GBP/USD: The pair attempted to drop last week, reaching bottom at 1.2695, but turned up and then closed higher at 1.2960, and now fights around 1.3000. Trading signals are neutral, but the longer the price remains above 1.2925, the short-term outlook is upward. On the upside, a clear break and daily closing over 1.3000 will clear the road to 1.3125. Downwards, a clear break and daily closure back below 1.2925 will interrupt the upward rally, but only a clear break below 1.2695 will activate my descending model again.
GBP/Usd started the week with a bearish gap and downward movements continue on Brexit disappointment. In the H4 chart, the pair is consolidating around 1.2840 before the further decline as long as the Irish border problem stays unsolved.
On Monday, the pound fell to a session low of 1.2826 against the dollar - the lowest since November 1. On Tuesday, the pound rose in price: the pair GBP / USD rose by 0.33% to 1.2891, but its growth is limited due to fears that the UK may withdraw from the EU without signing the Brexit agreement.