The British pound remains well-supported against the US dollar in early Monday trade, after a fairly bullish weekly price close on Friday.
26 August 2019, OctaFX – Sterling moved slightly upwards after the challenge of Brexit continued. The issue was discussed by Boris Johnson and other European leaders at the G20 meeting in France. In a statement, Johnson said that a deal can be reached easily if the EU leaders agreed to remove the backstop clause.
The EU has insisted that the backstop is essential to ensure that there are good relations between North Ireland and the Republic of Ireland. The EU has asked the UK to offer an alternative. In a statement, Johnson said that the UK would not pay the GBP 39 billion divorce bill in full in the event of a no-deal Brexit on October 31.
GBPUSD technical analysis
The recent advance towards the 1.2300 level has created another higher high, further encouraging traders to buy the GBPUSD pair. Overall, the large inverted head and shoulders pattern on the lower time frame is projecting that pair could recover towards the 1.2500 level.
The GBPUSD pair is only bearish while trading below the 1.2200 level, key support is found at the 1.2177 and 1.2150 levels.
If the GBPUSD pair holds above the 1.2200 level, buyers may test towards the 1.2310 and 1.2380 levels.
This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.