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by FXOpen on June 5, 2019

The GBP/USD pair is growing its fourth consecutive trading session

No new bad news on Brexit yet, and the statements by St. Louis Fed President James Bullard, that in the near future may require a reduction in rates, strengthened market expectations and put pressure on the dollar towards a decrease.

Also, the British pound found support in connection with optimism about trade relations with the United States after Brexit, especially after US President Donald Trump announced that the USA would have a very significant trade deal with the UK.

However, in the face of continuing British political uncertainty, since the hard-liner advocating Brexit, Boris Johnson is gaining momentum to become the next British Prime Minister, and this could later lead to a withdrawal without a deal, further strengthening of GBP is questionable.

Also today comes the British PMI in the service sector, as well as data from the US – ADP report on employment in the private sector and non-manufacturing PMI ISM, which may affect the prevailing rate.

GBP/USD Technical Analysis 05th June 2019

The British Pound started a decent recovery from the 1.2550 swing low against the US Dollar. The GBP/USD pair traded above the 1.2600 and 1.2620 resistance levels to start the recent recovery.

There was even a close above the 1.2650 level and the 50 hourly simple moving average. The pair traded as high as 1.2713 and it is currently consolidating gains. On the downside, there is a strong support forming near the 1.2680 level and a bullish trend line.

graphic_gbp_usd_5June_19

Moreover, the 38.2% Fib retracement level of the last wave from the 1.2641 low to 1.2713 high is also near the 1.2686 level to act as a support.

On the upside, if there is a break above the 1.2710 level, the price could accelerate above the 1.2720 and 1.2730 levels. The next main resistance for the bulls is near 1.2750.

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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