GBP/USD Current Price: 1.2462

  • UK PM Johnson and Irish counterpart Varadkar agreed  there is a pathway to a Brexit deal.
  • Data coming from the UK missed the market’s expectations, indicated a steeper economic slowdown.
  • GBP/USD at its highest for the week and technically bullish.

The Sterling soared on renewed Brexit hopes, with the GBP/USD pair reaching a fresh weekly high of 1.2468. After three hours of discussion, UK PM Boris Johnson and his Irish counterpart, Leo Varadkar, released a statement indicating that there is a pathway to a Brexit deal, and announcing EU-UK talks will resume this Friday. Later, Irish PM Varadkar added that he believes that it’s now possible to come to an agreement before the end of October

Brexit-related headlines offset dismal UK data, as, during the London session, the kingdom released several disappointing figures. Industrial Production was down by 1.8% YoY, more than doubling the market’s expected slide, while Manufacturing Production in the same period declined by 0.7%, also much worse than anticipated. Also, the monthly Gross Domestic Product came in at -0.1% in August, although the NIESR GDP estimate for the three months to September printed 0.5%. There is no data scheduled for release in the UK this Friday, but for sure, Brexit talks will provide enough catalysts.

GBP/USD short-term technical outlook

The GBP/USD pair has bounced sharply after holding above the 61.8% retracement of its September rally, now hovering near the 23.6% retracement of the same run at 1.2440. In the 4 hours chart, the pair has surpassed all of its moving averages, while technical indicators maintain their bullish slopes in overbought territory, maintaining the risk skewed to the upside. The next probable bullish target is 1.2581, September monthly high.

Support levels: 1.2400 1.2365 1.2320

Resistance levels: 1.2470 1.2525 1.2580

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD nears weekly highs as risk-on returns

The EUR/USD pair was dragged higher by a soaring Pound, now hovering around 1.1040. The market is all about sentiment, and this last dependent on Brexit and the US-China trade relationship.

 

EUR/USD News

GBP/USD surges to 5-month highs on reports of a draft Brexit deal

GBP/USD has leaped toward 1.28, hitting the highest since May. Reports suggest that the UK and the EU are zooming in on a deal. Details are awaited and negotiations continue.

GBP/USD News

USD/JPY in search of a firm direction, stuck in a range below mid-108.00s

The prevalent risk-on mood weighed on the JPY’s safe-haven status and extended support. A sharp fall in the US bond yields undermined the USD and failed to impress bullish traders.

USD/JPY News

Cryptos: Incumbents don't know to play well

The Libra project led by Facebook remains on track despite the first defections. Those who have abandoned the project are mostly payment gateways. Bitcoin's lack of tone weighs on Ethereum's mood.

Read more

Gold consolidates in a range below $1500 mark

Gold extended its sideways consolidative price action on Tuesday and remained confined in a narrow trading band, below the key $1500 psychological mark.

Gold News

Forex Majors

Cryptocurrencies

Signatures