GBP/USD Current Price: 1.2701

  • PM May offered MPs a vote on a second referendum, as long as they approve a withdrawal deal.
  • The UK will publish April inflation figures, annual core inflation seen up by 1.9% vs. the previous 1.8%.

The GBP/USD pair jumped to 1.2813 mid-US session following headlines indicating that UK PM May deal would offer a new Brexit option to the Parliament, also allow voting on a second referendum. The Brexit political chaos has been a significant drag for Sterling, further weighing after cross-party talks ended without an agreement. PM May surprised the markets this Tuesday by announcing a new Brexit bill, which details will be unveiled in the next few days, clarifying that she still opposes a second referendum. Furthermore, she said that a Brexit deal would be needed first. The encouraging headline was offset by May sticking to her guns. Once she was done, DUP Deputy Dodds said that while they might need to wait to see the text of the 'new bill,' it was clear that fatal flaws remain unchanged. Opposition leader Corbyn, later added: "we won't back a prepackaged version of the same old deal - and it's clear that this weak and disintegrating government is unable to deliver on its own commitments." The GBP/USD pair returned to pre-announcement levels afterward.

This Wednesday, the UK will release April CPI figures, with annual core inflation seen up by 1.9% vs. the previous 1.8%. The kingdom will also publish PPI data for the same period, seen posting a modest monthly advance, and the Retail Price Index, seen up by 0.8% MoM and by 2.8% YoY.

Ahead of the Asian opening, the GBP/USD pair is down for the day, barely holding above the 1.2700 level. The sharp intraday spike has helped it correct the extreme oversold conditions, although it didn't affect the dominant bearish trend. The 4 hours chart shows that the pair closed the day below a bearish 20 SMA, while the Momentum indicator turned flat below its 100 level and the RSI resumed its decline, currently at 32, in line with the mentioned bearish trend. The pair could correct higher, although selling interest will likely add at higher levels. A vital support is February monthly low at 1.2668, with a break below it anticipating a steeper decline.

Support levels: 1.2700 1.2665 1.2630

Resistance levels: 1.2750 1.2785 1.2820  

View Live Chart for the GBP/USD

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.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD consolidates losses as Fed moderates message

EUR/USD is trading above 1.1350, consolidating its losses. The Fed's Bullard and Chair Powell have conveyed a balanced message and chancing for a sharp rate cut of 50bp in July have dropped.

EUR/USD News

GBP/USD on the back foot after Johnson's Brexit commitment

GBP/USD is trading below 1.2700, losing some ground. Leading Conservative contender Johnson has rattled markets by saying leaving the EU by October 31st is "do or die." BOE Governor Carney speaks later.

GBP/USD News

USD/JPY: Bulls back in charge, re-takes 107.50

The less dovish rhetoric from a selection of Fed speakers overnight continues to aid the post-FOMC US dollar recovery, prompting the USD/JPY pair to retest the midpoint of the 107 handle despite negative Asian equities. 

USD/JPY News

US Durable Goods Orders Preview: Recovery but where is the trend?

The US Census Bureau will release its report on Manufacturers New Orders for Durable Goods in May on Wednesday June 26th at 8:30 am EDT, 12:30 pm GMT

Read more

Gold: 100-HMA triggers the U-turn towards $1421?

Gold is on a run towards near-term horizontal-resistance following its U-turn from the 100-hour moving average (HMA) ticks it up to $1407.80 ahead of the European open on Wednesday.

Gold News

Majors

Cryptocurrencies

Signatures