by FXOpen on January 23rd, 2019

GBP/USD outlook: Brexit remains the only driving force for GBP bulls

The GBP/USD pair continues to be the only instrument of the Forex market, which does not obey the general market trends. While China-US trade wars and political signals in various European countries continue to dominate the high-risk asset prices on the world stage, these factors have hardly affected the pound recently, since Brexit remains the only driving force of the GBP/USD price momentum.

The British pound rose yesterday in the London markets following optimistic employment data. In addition, the pair was based on positive price behavior in the US markets, as the controversial news regarding trade negotiations between China and the US lowered US stock prices, which led to a decline in the dollar in the broad market.

GBP/USD Technical Analysis

The British Pound formed a solid support base near the 1.2860 level and later traded higher against the US Dollar. The GBP/USD pair climbed above the 1.2880 and 1.2900 resistance levels to start a decent uptrend.

The pair even settled above the 1.2900 level and the 50 hourly simple moving average. Moreover, there was a break above a major bearish trend line with resistance at 1.2920 on the hourly chart.

A high was formed at 1.2974 and the pair is currently consolidating gains. An initial support is near 1.2945 and the 23.6% Fib retracement level of the last wave from the 1.2855 low to 1.2974 high.

If there is a downside correction, the GBP/USD pair is likely to find a solid buying interest near the 1.2945 and 1.2925 support levels. On the upside, initial resistance is at 1.2975, followed by 1.3000.

By FXOpen

FXOpen is a Forex and Cryptocurrency broker founded in 2005 by a group of traders. With over 10 years of experience, the company has established itself as a major Forex broker that continues to expand rapidly across the globe. FXOpen offers the MT4 and MT5 Forex trading platform with a wide range of trading instruments including 100+ FX, CFDs, Indices and Cryptocurrency markets. FXOpen also provides its own PAMM technology allowing clients to benefit from the strategies of professional traders with a proven track record of successful trading. The FXOpen Group also includes the ASIC regulated FXOpen AU in Perth Australia and the London-based FXOpen UK that is regulated by the FCA.