GBP/USD Current price: 1.3104
- Brexit talks to resume mid-August, with the focus still on the Irish border issue.
- GBP/USD pair at risk of falling further after three weeks of closing in the red.
The GBP/USD pair edged lower for a third consecutive week but managed to close a couple of pips above the 1.3100 threshold, unchanged Friday as US data failed to impress speculative interest. The Sterling Pound saw little action these last few days, as the UK didn't release relevant macroeconomic figures, while the government didn't provide fresh Brexit headlines, beyond the fact that EU Chief Negotiator Barnier rejected PM May's proposal on the Irish border, nothing that can surprise the markets. Brexit talks will resume mid-August. This Monday, the UK will release June money data, including Mortgages Approvals. The daily chart for the pair showed that it attempted to recover ground beyond a mild bearish 20 DMA, but failed, with the indicator currently at around 1.3190, providing a dynamic resistance. In the same chart, the Momentum hovers right below its 100 level, while the RSI turned flat around 43, all of which skews the risk toward the downside without confirming it just yet. Shorter term, and according to the 4 hours chart, the pair also presents a neutral-to-bearish stance, having held Friday below a directionless 20 SMA and with technical indicators heading nowhere within negative levels. The bearish momentum will likely increase on a break below 1.3045, a static strong support.
Support levels: 1.3090 1.3045 1.3010
Resistance levels: 1.3145 1.3190 1.3230
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
AUD/USD stays depressed below 0.6200, awaits US CPI for fresh impetus
AUD/USD struggles to capitalize on its recent recovery gains while trading in the red below 0.6200 as traders opt to wait for the US CPI data before placing fresh directional bets. In the meantime, markets remain cautious and help limit the US Dollar pullback from over a two-year peak.
USD/JPY holds steady near 158.00, as focus shifts to US CPI
USD/JPY oscillates in a range near 158.00 in the Asian session on Wednesday amid subdued US Dollar price action and ahead of the crucial US CPI report. The downside remains cushioned amid wavering BoJ rate hike expectations. Further, prospects for fewer Fed rate cuts favor the US Dollar, supporting the pair.
Gold price bulls seem reluctant near $2,675 ahead of US inflation data
Gold price returns to the red near $2,675 following the previous day's bounce from a one-week low even as the US Dollar and the US Treasury bond yields stay defensive. Moreover, expectations that the Fed will pause its rate-cutting cycle weigh on the non-yielding Gold price ahead of the key US CPI data.
Bitcoin could lose its diversification status as correlation with stocks increases
Bitcoin's rising correlation with the traditional stock market is gradually affecting its role as a portfolio diversifier. This trend has been visible following Bitcoin's similar reactions to the S&P 500 upon macroeconomic data releases.
Small business optimism shoots up in December
Small business sentiment continued to improve in December alongside greater economic and public policy certainty. The NFIB Small Business Optimism Index rose 3.4 points to 105.1, reaching its highest level since October 2018.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.