GBPUSD Price Analysis – British Pound Holds Above 1.3000


January 15, 2020 | SQUARED DIRECTThe GBPUSD price was relatively unchanged in the Asian session. The pair is trading above the 1.3000, which is slightly above yesterday’s low of 1.2155.

British Pound Fundamental Highlights

The Pound losses were capped and reversed yesterday, despite the disappointing GDP and Manufacturing Production data, as the Cable looks to extend the bounce towards 1.3075 ahead of the UK CPI report. However, the
market remains cautious as the US-China phase 1 signing ceremony could still boost the US Dollar up.

Additionally, the latest comments from the UK PM Johnson, denying Scottish PM Sturgeon’s request to hold another
Scottish independence referendum keeps a check on the British Pound’s recovery, as it further fuels Hard Brexit concerns. Therefore, the Sterling could possibly bounce in the short-term towards 1.3075, however, in the long-term perspective, the increased BOE dovish expectations could continue to weigh on the pair.

GBPUSD Price Technical Analysis

The Cable bulls were able to break above the short-term trend line resistance yesterday, 1.3015, and continue to push higher eyeing the 1.3075 the medium-term trend line, where the 50 and the 200-day moving averages are located. The bears will likely step back in around that resistance area to pull the price back down towards 1.3015 and possibly
1.2960.

  • Support: 1.3015 / 1.2960
  • Resistance: 1.3075 / 1.3175

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