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Currency
by FXOpen on February 27th, 2019

GBP/USD outlook: the British Pound climbed higher vs the US Dollar focusing on Brexit debate

The British pound continued to go higher on Tuesday, testing the highest rate in the past four months. The GBP/USD pair growth was due to the possible Brexit delay. UK Prime Minister Theresa May invites the parliament to vote for Brexit without a deal or to postpone it if her agreement does not receive approval of the parliament.

On the other hand, on Tuesday, the head of the Bank of England, Mark Carney, said that the British Central Bank will strengthen economy support for the economy in the event of an exit without a deal. Delaying Brexit will ease political tensions, but worsen the state of the economy.

GBP/USD Technical Analysis

The British Pound climbed higher sharply and broke the 1.3160 and 1.3200 resistance levels against the US Dollar. The GBP/USD pair even broke the 1.3250 resistance area to move into a positive zone.

GBPUSD-Chart

A high was formed at 1.3287 and the pair settled above the 50 hourly simple moving average. The pair is currently correcting lower towards the 38.2% Fib retracement level of the recent wave from the 1.3124 low to 1.3287 high.

However, there are many supports on the downside near the 1.3220 zone. There is also a bullish trend line in place with support at 1.3210 on the hourly chart.

Therefore, dips towards the 1.3210 and 1.3220 levels are likely to find buyers. On the upside, a break above the 1.3270 and 1.3280 resistance levels could push the pair towards the 1.3300 and 1.3330 levels in the near term.

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.

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