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GBP/USD Is Neutral In The Near Term But Still Has Room To Advance

GBP/USD Current price: 1.3757

  • UK money-related figures missed expectations, limiting GBP’s advance.
  • Profit-taking pushed the pair lower in the American afternoon.
  • GBP/USD is neutral in the near term but still has room to advance.

The GBP/USD pair ended Tuesday unchanged around the 1.3750 level, trimming early gains that pushed the pair to a fresh two-week high of 1.3807. The UK published July money-related data, which showed that Consumer Credit contracted to £-0.042 billion, while Mortgage Approvals decreased to 75.2K. The numbers failed to impress, with the pair moving alongside the market’s demand for the American dollar.

On Wednesday, the UK will publish the BRC Shop Price Index for July and August Nationwide Housing Prices. Later in the day, Markit will release the final reading of the UK August Manufacturing PMI.

GBP/USD short-term technical outlook

The GBP/USD pair is unchanged for a second consecutive day, unable to attract buying interest despite the broad dollar’s weakness. The 4-hour chart shows that the pair has been confined between moving averages, currently pressuring a mildly bullish 20 SMA while meeting sellers around a flat 200 SMA. Technical indicators have turned south, with the Momentum heading firmly lower and nearing its 100 level and the RSI stable around 51, skewing the risk to the downside without confirming it.

Support levels: 1.3725 1.3680 1.3630

Resistance levels: 1.3800 1.3845 1.3890

Image by cosmix from Pixabay

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