GBP/USD Current price: 1.3119
- UK Brexit Secretary Raab's optimism hardly spooked no-deal fears.
- Risk aversion gave the greenback a lift against high-yielding currencies.
The Pound recovered some of the ground lost by the end of last week, with the GBP/USD pair trading as high as 1.3166. Earlier in the day, there were some reports doing the rounds about a possible snap election in the UK as soon as November, to save PM May leadership and therefore prevent the collapse of Brexit talks. Furthermore, Brexit Secretary Raab hit the wires a couple of times through the day, with optimistic comments aimed to cool down fears rather than offering something substantially relevant. He dismissed chances of a snap election, and said that the Cabinet meeting ended after a "healthy discussion." The latest CBI Industrial Trends Survey showed that manufacturers’ output volumes growth by less-than-expected, with the index down to -1 from the previous 7. There are no macroeconomic releases scheduled in the UK for Tuesday.
The GBP/USD pair eased from the mentioned high to trade a few pips above the 1.3100 level, stalling its intraday advance around a critical resistance area, as the price was unable to recover ground above a major Fibonacci resistance, the 50% retracement of the 2016/18 rally, neither above a mild-bearish 20 SMA in the 4 hours chart. In the mentioned time frame, technical indicators retreated after an early advance within negative levels, with the Momentum heading south at fresh monthly lows and the RSI at 45, leaning the scale toward the downside.
Support levels: 1.3090 1.3055 1.3020
Resistance levels: 1.3165 1.3200 1.3245
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD stays near 1.0800 after upbeat US data
EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.