GBPUSD Bullish Bias Capped Beneath 1.3100 Level As Brexit Talks Weakened Sterling

GBPUSD Price Analysis – August 16

The GBPUSD pair has ended a second straight week beneath the 1.3100 price level, unable to stimulate growth potential as Sterling is weakened by Brexit talks. A weak dollar was not enough to drive the pair higher, as Sterling’s demand was constrained by fears about the UK’s potential trading partnership with the EU.

Key Levels
Resistance Levels: 1.3514, 1.3303, 1.3185
Support Levels: 1.2982, 1.2812, 1.2647
GBPUSD Long term Trend: Bullish
The daily chart’s Relative Strength Index also flirts with 70 while mildly overbought. Its trend stays optimistic, and GBPUSD trades beyond the 5 and 13 moving average. Generally, the intensity doesn’t thoroughly reflect bullishness.

Initial levels to consider are 1.3050 levels, which was a temporary limit in August – and just before the global epidemic – and a temporary high of 1.3145 level. More strong resistance is at level 1.3200, a swing high before the crash in March. Even farther up, level 1.3200 was a high point in January, followed by levels 1.3303 and 1.3514.
GBPUSD Short term trend: Ranging
Last week GBPUSD stayed beneath 1.3185 level in consolidation and trend remains unaltered. First this week the initial bias stays neutral. Further rally with support level 1.2982 intact is anticipated.

On the upwards, a breach of 1.3185 levels may expand the rally from 1.1409 to 1.2647 levels, from 1.2075 to 1.3303 levels. Breakage of 1.2982 support levels may, therefore, validate short-term topping. The intraday bias for 1.2812 resistance turned support level is shifted back to the downside.

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