GBP/USD edged up on Asian trading session with 1.3400 high, but failed to press forward and dipped to 1.3374 low. It is currently trading 1.3388 intraday. On the technical level, the pair managed to close above 10-EMA yesterday and is currently flirting at 1.3380. Any upward action for the cable today should be hit a 1.3450 strong resistance area as the pair still failed to break it since last week.
Fundamentally, Bank of England Gov. Mark Carney will speak today at the NY opening sessions, where he will testify on the November Financial Stability Report before the Treasury Select Committee, which should offer fresh impetus to the GBP. On the other hand, Brexit negotiations do not have any clear terms, which weighs negatively on the pound, while the market is awaiting fresh details. A BBC report mentioned that the Bank of England is set to unveil plans allowing European banks to operate in the U.K.
As for the greenback, the U.S. tax bill vote should see the light either today and tomorrow followed by a press conference by President Donald Trump, which will set the tone for the U.S. dollar facing GBP.
GBP/USD Technical overview:
Closing price: 1.3384
Target price: None
Resistance levels: 1.3450-60, 1.3500
Support levels: 1.3310, 1.3235+/-
Trend: Sideways / Down
Trend reversal price: 1.3454
Comment: The market is still biased down, contained under 1.3450* resistance. A roll off from Mon-Tuesday's sideways days open up potential for selloffs to 1.3235 and chance to stretch for the low 13200's. Trade may again congest in Mon-Friday's range, but tight congestion will bear flag. A close over 1.3454* is needed for a short term reversing upturn.