We have the 4H chart above. GBPUSD is slightly rising because of the USD weakness across the board.
The rise could be much better but is capped because of the selling pressure of the sterling, stemmed from the usual UK political reasons.
We actually had the lowest point since February recently, when it touched 1.2550.
There was a hard decline following Mays decision to step down as a PM. which kind of assumes a failure from her part to clinch a Brexit deal and in consequence adding fuel to the hard Brexit fire.
Even so, there are some strong levels around this area with the following ones perhaps giving a big fight and preventing further declines:
1.2650, 1.26 and 1.2550. The levels should hold unless there is a new major negative development surrounding the UK situation. Then 1.25 would be then next critical point of support for this pair.
On the upside, there might be an attempt to rise closer to 1.28 with the marked lines being reasonable targets for the short-term (1.273 and the area above 1.28).
A sustainable move higher could be possible if it remains above 1.28 comfortable before attempting to get closer or above major moving averages which are located around 1.293 (50-day average), 1.2950 (200-day average) and 1.30 (100-day average).
The idea is that it can remain contained mainly within the highlighted box area and short scalps with tight SL values can be attempted while also having medium-term positions in mind to the upside or downside, depending on your overall view as well.
The rise could be much better but is capped because of the selling pressure of the sterling, stemmed from the usual UK political reasons.
We actually had the lowest point since February recently, when it touched 1.2550.
There was a hard decline following Mays decision to step down as a PM. which kind of assumes a failure from her part to clinch a Brexit deal and in consequence adding fuel to the hard Brexit fire.
Even so, there are some strong levels around this area with the following ones perhaps giving a big fight and preventing further declines:
1.2650, 1.26 and 1.2550. The levels should hold unless there is a new major negative development surrounding the UK situation. Then 1.25 would be then next critical point of support for this pair.
On the upside, there might be an attempt to rise closer to 1.28 with the marked lines being reasonable targets for the short-term (1.273 and the area above 1.28).
A sustainable move higher could be possible if it remains above 1.28 comfortable before attempting to get closer or above major moving averages which are located around 1.293 (50-day average), 1.2950 (200-day average) and 1.30 (100-day average).
The idea is that it can remain contained mainly within the highlighted box area and short scalps with tight SL values can be attempted while also having medium-term positions in mind to the upside or downside, depending on your overall view as well.