GBP/USD analysis: Brexit-related concerns to keep weighing on the Pound

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3002

BOE's Carney concerns about a no-Brexit deal put the 1.3000 level at risk.
BCR retail sales expected to post a modest 0.4% increase in July.

The GBP/USD pair closed at the 1.3000 figure, down for a fourth consecutive week, as broad dollar's strength coupled with tepid UK data. The Markit Services PMI for July came in at 53.5 vs. the expected 54.7, the lowest in three months. The pair came under strong selling pressure on Thursday, as despite the BOE rose rates by 25pb as expected, Governor Mark Carney warned about the effects on a no-Brexit deal, referring to chances of that happening as "uncomfortably high" at the moment. The lack of progress in Brexit negotiations is what keeps the Pound away from speculators' radar these days. Talks between the UK and the EU will resume next week. The UK will release BRC sales this Monday, seen posting a modest 0.4% in July. In the meantime, the pair is technically bearish, given that in the daily chart, the 20 DMA turned modestly lower while attracting selling interest all through the week. The Momentum indicator in the mentioned chart stands flat below its 100 level, but the RSI heads lower, around 36, leaning the scale toward the downside. Shorter term, the downward potential is stronger, as in the 4 hours chart, the pair keeps moving away from a strongly bearish 20 SMA, while technical indicators remain well into the red, with modest downward slopes.

Support levels: 1.2970 1.2925 1.2885

Resistance levels: 1.3045 1.3085 1.3120

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 holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.