GBP/USD - Recovery continues, focus on German politics and Brexit
|- GBP/USD is back above 1.32
- Focus on German politics and Brexit.
GBP/USD has recovered more than 50% of its intraday losses but is struggling build momentum above 1.32 levels.
Focus on German politics
The collapse of the German coalition talks and the resulting action in Asia (weak EUR, GBP) clearly indicates that investors fear "all major decisions, including Brexit negotiations" could be put on hold till the situation in Germany is sorted out.
Thus, GBP could remain under pressure in Europe. The data calendar is light, but BoE Deputy Governor David Ramsden, who voted against the rate hike earlier this month, will deliver a speech at 6:30 pm GMT. Ramsden would most likely talk down the need to hike rates in the short-term. Also, the action in the treasury yields could offer clues to Cable traders.
GBP/USD Technical Levels
Jim Langlands from FX Charts writes - "Overall, the momentum indicators are still in neutral, so a cautious stance is required and it is wise to stand aside (although I remain long GbpAud). On balance, I still think Cable could grind higher in the days ahead, although any negative Brexit headlines will see a rapid move to the downside, but for Monday, further choppy trade near current levels would not really surprise.
On the topside, resistance will again be seen at 1.3260, above which 1.3275/1.3300 would find good offers although I doubt we see it up here today.
On the downside, support will be now seen at 1.3170, 1.3150 and at 1.3135 ahead of the rising trend support low at 1.3100. I remain neutral, possibly very cautiously bullish. Note that the Autumn Budget Statement takes place on Wednesday."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.