GBP/USD Current Price: 1.2470

  • EU and UK making no progress on the Irish backstop issue.
  • Risk aversion triggered a correction from fresh two-month high.
  • GBP/USD could keep losing ground on a break below 1.2460, the immediate support.

The GBP/USD pair advanced up to 1.2581, it highest in over two months, but was unable to sustain gains, ending the week around 1.2470. Hopes that the UK and the EU could reach an agreement underpinned Sterling earlier in the week, although the lack of progress in finding a solution to the Irish backstop issue, forced bulls to take some profits out of the table ahead of the weekly close. Risk aversion coming from the trade war front added to the negative tone of the pair. Comments from EU Chief negotiator Barnier were unable to offset the sour mood, after he stated that “work on Brexit continues,” clarifying, however, that the "EU will remain vigilant and continue to apply all EU principles and values. We are determined to try and reach an agreement." The UK has no data scheduled to publish this Monday.

GBP/USD short-term technical outlook

The daily chart for the GBP/USD pair shows that the pair posted a higher high and a higher low on Friday, which keeps the risk skewed to the upside, despite closing in the red. In the mentioned time-frame, the pair is hovering around a bearish 100 DMA while far above a bullish 20 SMA. The Momentum indicator keeps heading north, although the RSI eased within positive ground. In the shorter term and according to the 4 hours chart, the pair is at risk of extending its latest decline, as it settled near its daily low, while technical indicators head south within neutral levels.

Support levels: 1.2460 1.2420 1.2385

Resistance levels: 1.2510 1.2555 1.2590

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. 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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex Analysis

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.


GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.


Gold sees weekly closing below $1700 - a caution for bulls

The steady decline in Gold prices (futures on Comex) accelerated on Friday, as the rates closed the week below the 1700 mark for the first time in three weeks at 1688.35. A weekly closing below the key 1700 level is unlikely to bode well for the bulls.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News

Forex Majors