GBP/USD Current Price: 1.2532

  • UK Retail Sales resulted worse than anticipated in August, BOE maintained the status quo.
  • EU’s Juncker said backstop could be replaced, a deal reached by October 31st.
  • GBP/USD firmly up on Brexit hopes, next bullish target at 1.2590.

The GBP/USD pair hit a fresh multi-week high in the US afternoon of 1.2560, getting a boost from comments from EU’s Juncker who said that if the objectives of the backstop are met through alternative arrangements, the backstop won´t be needed, adding that there could be a deal by the October deadline. The news gave a lift to Sterling, which earlier in the day fell to 1.2437. The UK released earlier in the day, August Retail Sales, which unexpectedly fell by 0.2% when compared to a month earlier, and increased by 2.7% YoY, less than the 2.9% expected. The Bank of England announced its latest monetary policy decision, but was a non-event, as MPC decided to maintain the status quo as expected, amid Brexit uncertainty.

Regarding Brexit, the Supreme Court completed the three-day hearing on whether PM Johnson’s decision to suspend the Parliament was lawful.  The court will release its decision on the matter early next week. Johnson challenged the court, as he didn’t rule out proroguing the Parliament again if needed. Later in the day, he reported “progress” in talks with the EU, although without providing any detail. The BOE will release its Q3 Quarterly Bulletin this Friday.

GBP/USD short-term technical outlook

The GBP/USD pair is technically bullish in the short-term, having extended its recovery beyond bullish moving averages in the 4 hours chart, after repeatedly finding buyers around the 20 SMA. Technical indicators in the mentioned chart have resumed their advances, heading north at fresh weekly highs and near overbought readings. The pair has a strong static resistance area around 1.2590, the next probable bullish target.

Support levels: 1.2500 1.2460 1.2420  

Resistance levels: 1.2590 1.2625 1.2660

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.

EUR/USD News

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.

GBP/USD News

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

Cryptocurrencies

Signatures