GBP/USD Current Price: 1.2711

  • Brexit cross-party talks ended without an agreement.
  • EU's parliamentary elections to take place this week and further hit Sterling.

The GBP/USD pair closed the week in the 1.2710 area, its lowest since mid-January, as the Pound plunged alongside Brexit cross-party talks, a "very negative development," as Irish PM Varadkar said. Both parts, PM Theresa May and Labour opposition leader, Jeremy Corbyn, announced the end of talks amid the absence of a "common position," according to PM May. Mr. Corbyn, on the other hand, said that the government hadn't moved its position fundamentally. The clock keeps ticking, as PM May said she would set a timetable for leaving her position after the Houses vote for a fourth time on her withdrawal deal. In the meantime, EU's Parliamentary elections will take place this week, with the UK being forced to participate, another negative factor for the Pound. The UK calendar doesn't include any relevant data at the beginning of the week, although inflation will take center stage this week, with the Inflation Report Hearings scheduled for Tuesday and April CPI for Wednesday.

The GBP/USD pair has been on a franc decline ever since hitting 1.3176 on May 3, extremely oversold after losing roughly 450 pips without an interim correction, yet technical readings continue to indicate that more declines are likely. In the daily chart, the Momentum indicator is at its lowest since mid-May, maintaining its bearish strength while the RSI indicator also heads sharply south, currently at around 28. In the 4 hours chart, the Momentum indicator is trying to recover from extreme readings, yet the RSI maintains its downward slope at 14, while the pair develops some 100 pips below an almost vertically bearish 20 SMA. Given the extreme conditions, the risk of an upward corrective movement is high, although selling interest would likely return if the pair approaches the 1.2800 price zone. The next relevant support comes at 1.2668, the low set on January 15.

 Support levels: 1.2705 1.2670 1.2630

Resistance levels: 1.2740 1.2785 1.2820  

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.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD: Bearish outside day as Fed tempers aggressive rate cut expectations

Tuesday’s bearish outside day makes today’s close pivotal. Fed officials pushed back on aggressive rate cut calls, pushing the USD higher. An above-forecast US durable goods data could yield a bearish daily close. 

EUR/USD News

GBP/USD offers fewer moves ahead of Carney’s speech

Having reversed from the 50-day SMA, mainly because of renewed Brexit fears and sluggish data from the UK’s CB retail sales survey, the GBP/USD pair trades modestly flat near 1.2685 ahead of the London open.

GBP/USD News

USD/JPY: Bulls back in charge, re-takes 107.50

The less dovish rhetoric from a selection of Fed speakers overnight continues to aid the post-FOMC US dollar recovery, prompting the USD/JPY pair to retest the midpoint of the 107 handle despite negative Asian equities. 

USD/JPY News

Conference Board Consumer Confidence: The China syndrome

The index declined to 121.5 in June from April’s revised 131.3. A much more modest drop to 131.2 had been predicted.  “The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence,” wrote Lynn Franco.

Read more

Gold: 100-HMA triggers the U-turn towards $1421?

Gold is on a run towards near-term horizontal-resistance following its U-turn from the 100-hour moving average (HMA) ticks it up to $1407.80 ahead of the European open on Wednesday.

Gold News

Majors

Cryptocurrencies

Signatures