News

GBP/USD keeping a close eye on 1.33, but so far unable to make contact

  • Sterling sees a thin Tuesday session lying ahead with a limited smattering on the economic calendar.
  • The BoE's FSR due on Thursday will likely keep traders out of the action until release time.

The GBP/USD is trading flatly for Tuesday, splashing around the 1.3280 level with a quiet session ahead.

The Sterling saw little change in Monday's session, initially dropping through Asia into 1.3220 before rebounding to claim a small gain on the day, closing the following US session near its current levels. The early week for the GBP is a thin showing on the economic calendar, though a couple of speeches from MPC members could bring some activity.

MPC members Haskel and McCafferty are giving a set of speeches, beginning at 09:00 and 09:30 GMT respectively, but their planned talking points are expected to remain mid-tier, and unlikely to divulge much new information about the Bank of England's (BoE) future moves. GBP traders will be looking forward to BoE Governor Mark Carney's speech coming on Thursday regarding the central bank's Financial Stability Report, leaving traders to sit on the sidelines during the London market until then.

Tuesday's upcoming US session also sees some speeches from central bank board members, with the FOMC's Bostic and Kaplan giving their own mid-tier speeches at 17:00 GMT and 17:45 GMT respectively.

GBP/USD levels to watch

As noted by FXStreet's own Valeria Bednarik, the Sterling has struggled to develop any real bullish momentum this week, and remains trapped by last week's highs: "the pair remained below Friday's high of 1.3314, while daily basis, it settled a lower low and a lower high, which somehow leans the risk toward the downside. In the 4 hours chart, the pair met buying interest around a bullish 20 SMA, currently at 1.3235, while technical indicators lost upward strength, the Momentum nearing its mid-line with a vertical slope and the RSI hovering around 55, in line with the limited buying interest around the pair. A bullish continuation is possible short-term on a break above the mentioned 1.3314 level, although investors will likely be cautious and rush to take profits out of the table ahead of Brexit clarity."

Support levels: 1.3235 1.3205 1.3170

Resistance levels: 1.3280 1.3315 1.3350

 

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