GBP/USD Current Price: 1.2796
- UK PM May expected to resign after the first week of June's Parliamentary vote on her Brexit deal.
- GBP/USD moving closer to February monthly low at 1.2772.
The Sterling extended its downward route against its major rivals, resulting in the GBP/USD pair trading as low as 1.2787, a level that was last seen mid-February. Brexit-related political chaos has finally taken its toll on PM May, who has promised to set a timetable for the election of her successor after submitting her Brexit deal to the Parliament for a fourth time at the beginning of June. Whether the deal is approved or not, PM May is anyway expected to resign afterward. Meanwhile, the cross-party talks´ impasse continues, and speculative interest has lost hopes Tories and Labours could come to an agreement that would easily be accepted by MPs. The UK calendar didn't have relevant data to offer and will remain empty Friday.
The GBP/USD pair trades around 1.2800 down for a sixth consecutive trading day, largely oversold yet with no signs of changing course, as the pair consolidates at daily lows. In the 4 hours chart, the 20 SMA heads lower almost vertically above the current level, while the 200 EMA also gains bearish strength above the shorter one. Technical indicators in the mentioned chart have lost directional strength, now consolidating near their recent lows. The pair has an immediate support at 1.2772, February monthly low, with a break below the level favoring another leg lower despite the extreme readings.
Support levels: 1.2770 1.2730 1.2695
Resistance levels: 1.2830 1.2865 1.2905
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 holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.