GBP / USD Current Price: 1.3293
- Brexit negotiations are making “better progress,” according to the EU’s Ursula von der Leyen.
- Retail sales in the UK beat expectations in October, but services output collapsed in November.
- GBP / USD is technically bullish, it could accelerate its lead once above 1.3320.
GBP / USD rose for a third consecutive week, ending the last one a handful of pips below the 1.3300 level. Turmoil in the United States kept the dollar under pressure, while the pound was supported by Brexit hopes. Talks between the UK and the EU were halted after an EU negotiator tested positive for the coronavirus, but resumed practically soon after. European Commission President Ursula von der Leyen said on Friday that “better progress” had been made, although she added that “there are still a few meters to the finish line”. Discussions in the market suggest that an announcement could be made this week.
The British currency found further support in October’s retail sales figures, which were up 1.2% MoM and 5.8% year-on-year in October, beating expectations and posting gains for the sixth consecutive month. Markit will release UK preliminary PMIs in November. Manufacturing activity is expected to contract from 53.7 to 50.5 while output of services is expected to settle at 42.5 against 51.4 the previous month.
GBP / USD Short Term Technical Outlook
GBP / USD is bullish, according to the daily chart, as it expands above the bullish moving averages, as technical indicators move up into positive levels, with limited strength. In the 4-hour chart, the pair offers a neutral to bullish position as the Momentum indicator remains stuck at neutral levels while the RSI advances around 61. A bullish SMA 20 provides dynamic support, currently at 1. 3260. A stronger lead could be expected with a clear break above 1.3320.
Support levels: 1.3260 1.3210 1.3165
Resistance levels: 1.3320 1.3365 1.3410
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