BRITISH POUND STEADY AHEAD OF BREXIT NEGOTIATIONS
The British pound is holding firm against the U.S dollar on Monday, as Brexit Secretary David Davis heads to Brussels today to start negotiations that will set the terms on which Britain leaves the European Union.
David Davis, who has long campaigned to leave the European Union, unlike current British Prime Minister Theresa May, will meet chief EU negotiator Michel Barnier, at the European Commission's Berlaymont headquarters at 09:00 GMT. David Davis and Michel Barnier are due to give a joint news conference later today, after talks amongst their teams, possibly lasting several hours.
In the short-term, the GBPUSD remains bullish, with the pair trading above all supportive lower time frame moving averages. Dip buying demand also remains evident in the pair, with Friday's trading low offering support at 1.2755, with the H1 100 period moving average just below at 1.2750.
In the medium-term, the GBPUSD remains neutral with a slightly bullish bias. The pair currently trades above the weekly pivot at 1.2743, and above trendline support at 1.2730.
However, caution is warranted as GBPUSD has been forcefully rejected from the 1.2800 level on numerous attempts, and is also failing to close above the 200 hour period moving average at 1.2885.