GBP/USD analysis: political uncertainty undermines Pound

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3215

The GBP/USD pair saw little action this Wednesday, confined to a tight range around the 1.3200 level for most of the day. Despite broad dollar's weakness, the Pound was unable to gather upward momentum, undermined by UK's political uncertainty, perceived as a major downward risk for Sterling. In the meantime, the fifth round of Brexit negotiations is under way, and as usual, the only thing that stands out if the absence of progress. An announcement of whether they achieved it or not, is expected by the end of the next week. This Thursday, the BOE will release its credit conditions survey, hardly a big market mover, while no other big news are scheduled in the UK for the rest of the week. According to the 4 hours chart, the risk is lean towards the downside, as the price is stuck around the 50% retracement of its last week's decline, having held for a second consecutive week above the 38.2% retracement of the same slide at 1.13170, and with the 20 SMA gaining upward strength below this last. Technical indicators have opposite directions, but within positive territory, with the RSI heading north around 58, also favoring a new leg higher, particularly on an extension above 1.3230, the immediate resistance.

Support levels: 1.3170 1.3130 1.3090

Resistance levels: 1.3230 1.3260 1.3300

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 near 1.1900 ahead of US data

EUR/USD struggles to build on Monday's gains and fluctuates near 1.1900 on Tuesday. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD declines toward 1.3650 on renewed USD strength

GBP/USD stays on the back foot and declines to the 1.3650 region on Tuesday. The negative shift seen in risk mood helps the US Dollar (USD) gather strength and makes it difficult for the pair to find a foothold. The immediate focus is now on the US Retail Sales data.

Gold stabilizes above $5,000 ahead of US data

Gold enters a consolidation phase after posting strong gains on Monday but stays above the $5,000 psychological mark and the daily swing low. US Treasury bond yields continue to edge lower on news of Chinese regulators advising financial institutions to curb holdings of US Treasuries, helping XAU/USD hold its its ground.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.