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GBP/USD is still weak

GBP/USD is still weak

Information is not investment advice

GBP/USD recovered last week from the 1.2440 area but met resistance around 1.2570 (resistance line from the end of June). The two attempts to overcome this level failed and the pair returned just above 1.25 where it started consolidating. As long as the pound stays above this support, it will retain a chance to continue consolidation and test the further resistance around 1.26 in line with last week’s candlestick that showed the pound wanted to find a base. However, the loss of 1.25 will mean a “double top” and open the way down to 1.2440 once again. 

Note that the pound is under the negative pressure as traders worry about the prospect of eurosceptic Boris Johnson winning the Conservative party leadership contest. 

GBPUSD h4.png

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