GBP/USD: making hard work of the upside, Brexit risks remain the challenge for bulls

Currently, GBP/USD is trading at 1.2396, down -0.78% on the day, having posted a daily high at 1.2515 and low at 1.2384.

GBP/USD is making hard work of the recovery from 1.2301 recent lows and met supply earlier on the back of Brexit concerns and commodities, namely oil, taking a hit. WTI dropped back below the $47 handle. However, more broadly speaking, the pound remains within neutral/mildly bullish territory above 1.2300 and in the 4-hours chart, the price is holding above a horizontal 20 SMA, while the Momentum indicator has bounced from its 100 level, and heads north, opposing to the RSI indicator that turned south and is currently around 48, as noted by Valeria Bednarik, chief analyst at FXStreet, adding, "The pair seems to have found a new comfort zone within 1.2300 and 1.2600, with the longer term risk still towards the downside amid Brexit woes."

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GBP/USD levels

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With spot trading at 1.2396, we can see next resistance ahead at 1.2418 (Weekly Classic PP), 1.2423 (Hourly 100 SMA), 1.2427 (Daily 20 SMA), 1.2440 (Daily Classic PP) and 1.2443 (Hourly 20 EMA). Support below can be found at 1.2384 (Daily Low), 1.2367 (Daily Classic S1), 1.2356 (Weekly Low), 1.2313 (Yesterday's Low) and 1.2240 (Daily Classic S2).