GBP/USD Outlook (21st August 2019)

Overall, GBP/USD is ranging across. Recently, GBP/USD has been showing some signs of strength, largely due to German chancellor Angela Merkel’s announcement that the EU will think about practical solutions to the Irish backstop without having to reopen the Brexit Withdrawal Agreement. One of the reasons why the British parliament insists on renegotiating the Withdrawal Agreement (which the EU refuses to do so) is to look for an alternative to the Irish backstop. If the EU and the UK are able to come up with a practical solution to the Irish backstop without renegotiating the deal, it will be very beneficial to the UK.

Currently, GBP/USD is moving towards the key level of 1.21. The next support level is at 1.20000 and the next resistance level is at 1.22000.