by FXOpen on April 3rd, 2019

GBP/USD outlook: a new ascending channel is being formed

The British pound fell slightly yesterday, approaching the 1.3000 level as the drama around Brexit continues. The British Parliament was unable to come to an agreement again, so the Pound rate is constantly fluctuating. British Prime Minister Theresa May said on Tuesday that she would ask the European Union to extend the Brexit talks and negotiate with Labor leader Jeremy Corbin in an attempt to break the deadlock in parliament. Investors might now concentrate on the UK services PMI and the US ADP employment change, ISM non-manufacturing PMI data for fresh impulse.

GBP/USD technical analysis

The British Pound found a strong buying interest near the 1.3000 level and recently corrected higher against the US Dollar. The GBP/USD pair jumped above the 1.3050 resistance level to move into a positive zone.

There was a break above a connecting bearish trend line at 1.3045 on the hourly chart. Later, the pair climbed above the 1.3080 level and the 50 hourly simple moving average. The pair even traded above the 1.3120 level before sellers appeared near the 1.3150 level.

The pair is currently consolidating gains below the 1.3150 resistance area. If there is an upside break, the pair could rise towards the 1.3200 resistance area.

On the downside, there is decent support near the 1.3100 level and the 38.2% Fib retracement level of the last wave from the 1.3013 low to 1.3149 high.

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