GBP/USD analysis: Brexit headlines prevent the pair from surpassing 1.33

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3255

Upbeat UK Retail Sales pushed the pair through 1.3200 and led to a dollar sell-off.
Back and forth over the Irish border unsolved issue limit Pound's advance.

A soaring Pound led the way lower for the greenback across the board after the GBP/USD pair broke above the 1.3200 threshold, following upbeat UK Retail Sales. Sales rose 0.3% in August against forecasts for a 0.2% drop, and by 3.3% when compared to a year earlier, much better than the 2.3% expected. Furthermore, July readings were upwardly revised to 0.9% and 3.8% respectively. Dollar's sell-off exacerbated the advance, resulting in the GBP/USD pair reaching 1.3297, its highest early July. The Sterling's rally was cooled down by Brexit headlines, and nor the UK, neither the EU wants to give up on their stances on how to deal with the Irish border issue. UK P, May said that there can be no withdrawal agreement without an Irish backstop, and they are preparing for a no-deal scenario. German Chancellor Merkel, on the other hand, said she doesn't want the EU to compromise with the UK on access to the domestic European market.

The GBP/USD pair trades some 40 pips below the mentioned high ahead of the Asian opening, consolidating 100 pips above its previous comfort area. In the 4 hours chart, the pair broke through a major Fibonacci level with a long candle, a sign of strong buying interest, with the 20 SMA now hovering near the mentioned Fibonacci support at around 1.3170. Technical indicators in the mentioned chart have lost upward strength and are currently flat in overbought territory, without indicating a possible upcoming decline, but rather suggesting a new leg higher for this Friday.

Support levels: 1.3225 1.3170 1.3130

Resistance levels: 1.3295 1.3330 1.3380

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD stays defensive below 1.1600 as USD rebounds

EUR/USD trades marginally lower below 1.1600 in the European session on Friday. The pair edges down as the US Dollar rebounds slightly after Thursday’s massive profit-taking pullback. Looming US-Iran uncertainty revives the haven demand for the Greenback, while the Euro takes a breather after the hawkish ECB hike-led rally.

GBP/USD holds steady above 1.3400 ahead of US sentiment data

GBP/USD recovers losses and trades modestly flat above 1.3400 in the European trading hours on Friday. The UK Gross Domestic Product (GDP) declined by 0.1% in April, limiting the pair's upside amid renewed US Dollar weakness. The focus now remains on the US Michigan Consumer Sentiment data.

Gold flatlines above $4,200; bearish bias intact amid US-Iran risks

,Gold recovers modest intraday losses, and turns flat during the first half of the European session, though it remains below the daily peak. Despite uncertainty over the US-Iran peace deal, a steadier mood fails to help the US Dollar in preserving its gains. This is seen as a key factor offering some support to the commodity.

Pi Network: Bulls attempt comeback as bearish strength fades

Pi Network (PI) is trading at around $0.120 after a modest recovery the previous day. Despite this recent rebound, traders should be cautious as a scheduled unlock of 14.8 million PI tokens on Friday could limit the token's recovery potential by increasing market supply. Meanwhile, the technical outlook is showing early signs of fading bearish momentum, suggesting a short-term bounce.

UoM Consumer Sentiment Index expected to remain depressed near historical lows in June

The University of Michigan (UoM) will release the preliminary estimate of June’s Consumer Sentiment Index on Friday. The report is expected to show that consumers’ confidence remains depressed.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.