News

GBP/USD refreshes session tops, still below 1.3000 mark as focus remains on BoE

  • GBP/USD finds decent support near the 1.2900 mark and rebounds over 70 pips from lows.
  • The USD struggled to capitalize on the post-FOMC recovery move and helped gain traction.
  • Some positive Brexit developments further underpinned the British pound ahead of the BoE.

The GBP/USD pair managed to recover the early lost ground and was last seen trading near the top end of its daily trading range, around the 1.2970-75 region.

The pair witnessed some selling through the first half of the trading action on Thursday and extended the previous day's retracement slide from the key 1.3000 psychological mark, or weekly tops. The US dollar added to the post-FOMC recovery move and got an additional boost from weaker global risk sentiment. This, in turn, was seen as a key factor exerting pressure on the GBP/USD pair.

The greenback, however, failed to preserve its gains, instead met with some fresh supply at higher levels and assisted the GBP/USD pair to find decent support near the 1.2900 round-figure mark. The pair bounced over 70 pips from daily lows and was further supported by reports that Britain offered tentative concessions on fisheries in trade talks with the European Union last week.

The latest comments by the European Union’s Brexit negotiator Michel Barnier further added to the optimism and underpinned the British pound. Barnier was noted saying that the UK's move on fisheries is a glimmer of hope and he still believes that a deal is possible. Meanwhile, the upside seemed limited ahead of the key central bank event – the BoE monetary policy update.

The UK central bank is not expected to change its policy settings but provide signals to add more stimulus to support the economy from a possible Brexit shock. Hence, the key focus will be on the accompanying statement, which, along with the incoming Brexit-related headlines, will influence the near-term GBP price dynamics and provide a fresh directional impetus to the GBP/USD pair.

Technical levels to watch

 

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.