GBP/USD Current Price: 1.2517
- Pound weakened on the back of persistent Brexit uncertainty.
- GBP/USD pressuring the 1.2500 figure, also a critical Fibonacci support.
- Latest UK employment data and a BOE’s Carney speech to gather attention Wednesday.
The Sterling has weakened against its American rival, with the GBP/USD pair falling to 1.2509, bouncing just modestly ahead of the US close to finish the day in the 1.2520 region. The UK currency was unable to capitalize broad dollar’s weakness, as Brexit concerns weighed, although there was no particular catalyst behind the intraday decline. The UK will release this Tuesday its latest employment data. The ILO unemployment rate for the three months to May is expected to remain steady at 3.8%. Wages in the same period are seen up by 3.5% YoY excluding bonus, and by 3.1% including bonus. The number of unemployed people is expected to have decreased to 18.9K in June from 23.2K in the previous month. The employment report is considered a first-tier one, despite the sector is doing quite well, and wages have been above inflation for almost a year. The effect of the report in the price, however, is expected to be short-lived, moreover considering BOE’s Governor Carney is scheduled to speak later in the day.
GBP/USD short-term technical outlook
The GBP/USD pair erased Friday’s gains, having met short-term buying interest around the 23.6% retracement of the 1.2734/1.2438 decline at 1.2500, but given that the price hardly moved away from the level, the risk is skewed to the downside for this Tuesday. The 4 hours chart shows that the pair broke below the 20 SMA, later pulling back to the indicator before resuming its decline and achieving fresh lows, while technical indicators maintain their bearish slopes below their mid-lines, all of which favors a downward extension in the upcoming sessions.
Support levels: 1.2500 1.2475 1.2430
Resistance levels: 1.2550 1.2590 1.2630
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
EUR/USD keeps range above 1.0800 after German Retail Sales data
EUR/USD struggles to gain traction and continues to move in a tight channel slightly above 1.0800. The data from Germany showed that Retail Sales declined by 1.9% on a monthly basis in February, making it difficult for the Euro to attract buyers.
GBP/USD stays depressed below 1.2650 amid market caution
GBP/USD remains defensive below 1.2650 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
The other terminal rate: How far will policy rates be cut?
Recent communication by the Federal Reserve and the ECB has made it clear that the first cut in official interest rates is coming. Both central banks are saying the same but the ECB communication is more opaque than that of the Fed.