GBP/USD Current price: 1.3028
- Conservative Party Conference sees UK PM May struggling to defend her Chequers' plan.
- UK growth downwardly revised in Q1, business investment plunged in Q2.
The GBP/USD pair fell down to 1.3000 to close the day 1.3028, its lowest settlement since September 10. The pair edged sharply lower the last two trading days of the week, but ended it with modest losses, as the Pound got undermined by soft GDP data. The final version of the Q2 reading was confirmed a 4% quarterly growth, while Q1 growth was revised down to 0.1%, taking down the annual economic growth to 1.2%, below the 1.3% expected. Total business investment in the three months to June, plunged 0.7% while Q1 reading was revised to -0.5%. Also, the current account deficit for the same period was larger-than-expected, hitting £-20.317B. During Sunday, the Conservative Party Conference saw PM May battling to convince policymakers on her Chequers plan, appealing on her party to unite behind it. At the beginning of the week, Markit will release the UK's September Manufacturing PMI, forecasted at 53.8, up from August 52.8. The kingdom will also release August money figures.
From a technical point of view, the risk of a downward extension has increased, as in the daily chart, the pair broke Friday below a bullish 20 SMA, while technical indicators offer strong downward slopes, entering negative territory for the first time in September. Shorter term, and according to the 4 hours chart, the pair is also technically bearish after closing the day a handful of pips below the 200 EMA, and while technical indicators maintain their downward strength in overbought levels. A break through 1.2970, now the immediate support, could result in a steady decline toward the 1.2880 region, where the pair has the 61.8% retracement of the 2016/18 rally.
Support levels: 1.2970 1.2945 1.2900
Resistance levels: 1.3065 1.3100 1.3140
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD favours extra retracements in the short term
AUD/USD kept the negative stance well in place and briefly broke below the key 0.6400 support to clinch a new low for the year on the back of the strong dollar and mixed results from the Chinese docket.
EUR/USD now shifts its attention to 1.0500
The ongoing upward momentum of the Greenback prompted EUR/USD to lose more ground, hitting new lows for 2024 around 1.0600, driven by the significant divergence in monetary policy between the Fed and the ECB.
Gold aiming to re-conquer the $2,400 level
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
Bitcoin price defends $60K as whales hold onto their BTC despite market dip
Bitcoin (BTC) price still has traders and investors at the edge of their seats as it slides further away from its all-time high (ATH) of $73,777. Some call it a shakeout meant to dispel the weak hands, while others see it as a buying opportunity.
Friday's Silver selloff may have actually been great news for silver bulls!
Silver endured a significant selloff last Friday. Was this another step forward in the bull market? This may seem counterintuitive, but GoldMoney founder James Turk thinks it was a positive sign for silver bulls.