STERLING DROPS FROM 1.3323 RESISTANCE
The British pound has fallen from the 1.3323 resistance area against the U.S dollar during the European trading session, after a German government spokesman said it is too early for the United Kingdom to discuss any Brexit transition ideas.
After briefly dipping to 1.3247 on the headline, the GBPUSD pair has found strong buying interest back towards the 1.3290 region. Trading sentiment surrounding the pair remains bullish, despite the earlier drop, as traders begin to factor in an upcoming rate hike from the BOE.
From a technical perspective, the GBPUSD pair is creating lower price-lows and higher price-highs. Traders can also observe a dip-buying mentality returning to the GBPUSD pair.
Going forward, investors will now look to a raft of U.S economic data out, shortly, and the GBPUSD weekly price close, with closes below the 1.3220 level considered bearish.
Key intraday resistance for the GBPUSD pair above the 1.3323 level is located at 1.3360 and 1.3400. Once above the 1.3400 level, further resistance is seen at 1.3424 and 1.3450.
To the downside, key intraday GBPUD support is found at 1.3260 and the former swing-price low at 1.3247. Below the 1.3247 level, further support is found at 1.3220 and 1.3200.