GBP/USD cautious amid N. Korea news and UK May’s speech
|Having peaked near 1.3590 levels, the GBP/USD pair entered a phase of consolidation, as markets await the UK PM Theresa May’s speech for next direction.
GBP/USD stuck below 1.3600
The spot remains on the defensive so far this Friday, as the risk currency pound takes a minor beating alongside the Asian equities, as investors flock to safety amid re-emergence of North Korea-led geopolitical tensions.
N. Korea’s Ri: ‘It could be the most powerful detonation of an Hydrogen bomb in Pacific’
North Korea counter-measure may mean Hydrogen Bomb - Yonhap reports
Moreover, the bulls prefer to remain in a wait and see mode ahead of the critical speech due to be delivered by the UK PM May in Florence later today. Markets are looking forward to gaining some clarity on the Brexit Strategy, as the UK and EU remain in a deadlock over the Brexit divorce bill, with just one year left to reach a Brexit deal.
May’s remarks are likely to drive the sentiment behind the GBP and hence, any negative statements could knock-off Cable back towards 1.3450 levels. Conversely, if markets seek some clarity on May’s Brexit strategy disclosure, the spot could regains 1.3650 barrier.
Meanwhile, the economic calendar remains relatively light today, with the UK CBI industrial orders data and US Markit PMIs due for release.
GBP/USD levels to consider
According to Valeria Bednarik, Chief Analyst at FXStreet, “the pair gained a modest upward potential with the late intraday advance, but would need to break beyond the 1.3600 figure to be able to advance at a firmer pace. In the 4 hours chart, the price has recovered above a now flat 20 SMA, whilst technical indicators entered positive territory, maintaining their upward slopes, although with limited momentum, favoring the upside anyway. Support levels: 1.3535 1.3490 1.3450 Resistance levels: 1.3615 1.3650 1.3690.”
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