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Currency
by FXOpen on April 24, 2019

GBP/USD outlook: a new downward channel has been formed

The British pound went higher on Tuesday early in the morning as the official spokesman said that the PM Theresa May’s focused on passing the law necessary for the Brexit ratification. The spokesman told reporters that negotiations are underway with the Labor Party to find ways to promote Brexit. Compromises on both sides will be required in order to make progress in the Brexit process. However, by the end of the day the GBP/USD went lower. The reason was the activity of traders after the holiday and in connection with the general strengthening of the US Dollar.

GBP/USD technical analysis

The British Pound failed to break the 1.3020 resistance and declined recently against the US Dollar. The GBP/USD pair broke the 1.2975 support level to move into a bearish zone.

GBPUSD-Chart

Sellers even pushed the pair below the 1.2950 level, with a close below the 50 hourly simple moving average. The pair traded as low as 1.2928 and it is currently consolidating losses inside a contracting triangle with resistance at 1.2945 on the hourly chart.

If there is an upside break, the pair could test the 23.6% Fib retracement level of the last decline from the 1.3018 high to 1.2928 low.

On the downside, the main support is at 1.2930 and 1.2925. If GBP/USD fails to move higher, there is a risk of a sharp drop below the 1.2925 support. The next key support is at 1.2900, where buyers may emerge.

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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