GBP/USD Review: Sterling heading towards 1.30 with US NFP around the corner
|- Sterling heads into Friday on notably weaker footing.
- The upcoming US NFP report will easily overshadow today's UK Services PMI.
The GBP/USD is trading into 1.3020 just ahead of Friday's London market session, after seeing declines on Thursday from above the 1.3100 level after the Bank of England (BoE) delivered a widely-expected 25 bps rate hike, but warned that interest rate hikes are likely to remain subdued for several years to come, causing markets to lose what little confidence in the GBP had been built up into the Sterling in the run-up to the BoE's rate call.
Brexit concerns remain a constant drain on the Sterling, and negotiations are set to resume in several weeks with UK Prime Minister Theresa May at the helm after the UK's Brexit minister resigned in protest over PM May's latest Brexit proposal, which hard-line Brexiteers said gave up too much sovereignty to Europe, while European leaders also flatly rejected the proposal, leaving the UK back on square one in trying to secure a workable trade deal with the European Union before the official Brexit deadline of March 2019.
GBP/USD Technical Analysis
1.3000 remains the final barrier between GBP short-sellers and new lows for 2018, and a positive showing for the US NFP could see the US Dollar take a step up against the Pound. Bullish momentum remains limited, and the GBP/USD is already steeply off of the week's highs near 1.3150.
GBP/USD Chart, 15-Minute
| Spot rate: | 1.3012 |
| Relative change: | Negligible |
| High: | 1.3022 |
| Low: | 1.3005 |
| Trend: | Bearish |
| Support 1: | 1.3005 (current week low) |
| Support 2: | 1.2956 (2018 low) |
| Support 3: | 1.2900 (major technical level) |
| Resistance 1: | 1.3084 (38.2% Fibo retracement level) |
| Resistance 2: | 1.3172 (current week high) |
| Resistance 3: | 1.3212 (previous week high) |
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.