GBP/USD analysis: confined to range trading ahead of fresh news

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3231

CBI reported that total orders grew the most in nearly thirty years, up +17.
MPC members diverge on rate views, but agree on Brexit uncertainty weighing on the economy.

The GBP/USD pair seesawed between gains and losses but remained confined to Monday's range and closed the day unchanged around 1.3230. An early advance was sharply reverted as four MPC members testified before the Treasury Select Committee. Policymakers don't share the same view on rate hikes amid slow wages' growth, but coincide on their view about weaker investment, attributed to Brexit uncertainty. Anyway the statement just reminded investors that another rate hike is far away in the future at the time being. On a positive note, the latest monthly Industrial Trends survey from the CBI surprised to the upside, as total orders grew the most in nearly thirty years, up +17 in November from previous -2. The GBP/USD pair held above the daily descendant trend line broken late last week, but the potential upward is limited according to the 4 hours chart, as the price keeps pressuring a bullish 20 SMA, while technical indicators lost upward strength and settled near their mid-lines, directionless.

Support levels: 1.3195 1.3160 1.3130

Resistance levels: 1.3260 1.3300 1.3340

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.

GBP/USD surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD softens to near 1.1400 as ECB tightening bets fade

The EUR/USD pair trades with mild losses around 1.1415 during the early Asian session on Tuesday. The Euro softens against the US Dollar as traders reduce their bets on the European Central Bank rate hikes this year.

Gold tumbles 1.5% to fresh seven-month lows below $3,950

Gold remains under strong selling pressure for the second straight day early Tuesday, refreshing seven-month lows below $3,950. Renewed US-Iran hostilities over the weekend cast doubts over the sustainability of the peace deal. This, along with elevated expectations for Fed rate hikes, offers some support to the US Dollar and undermines the bullion.

Bitcoin stalls at $60K as buyer conviction fades, Strategy authorizes BTC sales

Bitcoin is trading around the $60,000 level on Monday after a sharp decline last week. With the top crypto struggling to recover, analysts suggest the market remains firmly in defensive territory as investors await stronger signs of demand.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.