GBP/USD Current Price: 1.2440

  • UK CBI’s industrial trend survey shows biggest slowdown since the financial crisis.
  • Boris Johnson won the Tory Leadership’s contest, risk of a hard-Brexit increased.
  • GBP/USD falters near a critical resistance, closes in the red for a third consecutive day.

The GBP/USD pair remained depressed this Tuesday, falling intraday to 12417, a fresh weekly low. The Pound was initially weighed by the  CBI’s industrial trends survey, which showed that business optimism had fallen sharply in July, down to -34 from -15 in June, indicating at the local industry is facing its biggest slowdown since the financial crisis, amid mounting fears of a tough Brexit. Adding pressure on the Pound, Anne Milton has resigned as skills ministers, attributing her decision to concerns about the prospect of a no-deal exit. As widely anticipated, Boris Johnson won the Conservative Party’s leadership, roughly getting double the votes of Jeremy Hunt. UK Finance Minister, Philip Hammond, has said he would resign if Johnson becomes the PM, but so far there is no news in that front. Anyway, given that Mr. Johnson said he would exit the EU with or without a deal by October 31, more resignation are expected alongside Sterling slides.  The UK macroeconomic calendar only includes June BBA Mortgage Approvals this Wednesday.

GBP/USD short-term technical outlook

The GBP/USD pair posted a modest intraday advance around the time of the announcement of the leadership contest’s outcome, but the rally was rejected by sellers aligned around the daily descendant trend line coming from June’s high. The pair posted a lower low and a lower high for a second consecutive day, which maintains the risk skewed to the downside. In the 4 hours chart, the 20 SMA has lost its strength upward, now near the mentioned trend line, providing dynamic resistance at around 1.2485. The Momentum indicator in the mentioned chart has bounced from oversold readings but remains in negative territory, while the RSI indicator has already resumed its decline, currently at 39, all of which favors a downward extension should 1.2420, the immediate support, gives up.

Support levels: 1.2420 1.2375 1.2320

Resistance levels: 1.2485 1.2510 1.2550

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

Latest Forex Analysis

Editors’ Picks

EUR/USD moving one step closer to 1.1000

The shared currency remains under pressure amid dismal local data and persistent demand for the greenback in a risk-averse environment. EUR/USD trading near a daily low of 1.1009.

EUR/USD News

GBP/USD trims early gains, trades in the red

The GBP/USD pair has retreated from its daily high of 1.3105 and now trades marginally lower daily basis near 1.3050, amid dollar’s strength, looming BOE and Brexit.

GBP/USD News

Crypto market: FOMO mode on, the late-comer's doubt

The crypto market opens the trading week by taking advantage of the momentum of the movement that started early Sunday morning. As if it were an established rhythm, this week it is time to go up after going down the previous one, and up again the previous one.

Read more

WTI: Bears going to town with the coronavirus, fresh lows of $52.18 printed

Oil priced are under pressure, extending a drop from just below the $66 handle at the start of his year to fresh lows at $52.18.

Oil News

USD/JPY: Bears lead on the run to safety

Coronavirus getting stronger, infections to continue to rise. Risk-off Monday, an empty macroeconomic calendar exacerbates sentiment trading. USD/JPY to accelerate its decline on a break below 108.65, a critical Fibonacci support level.

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures