GBP/USD Current price: 1.2961

  • The UK offered tentative concessions on fisheries in trade talks with the EU.
  • The Bank of England will unveil its latest decision on monetary policy this Thursday.
  • GBP/USD holding on to gains, but below the 1.3000 figure.

The GBP/USD pair neared the 1.3000 figure, soaring on reports the UK offered tentative concessions on fisheries in trade talks with the EU, one of the main issues blocking negotiations in the last months. The market ignored UK mixed inflation-related data, although August annual CPI improved to 0.2%. The Producer Price index in the same period, however, fell 0.9%, while the Retail Price index increased 0.5% against the 0.6% expected and the previous 1.6%.

 This Thursday, the focus will be on the Bank of England, as the central bank will unveil its latest monetary policy decision. Policymakers are not expected to change their current monetary policy, keeping rates at record lows of 0.1%. However, there’s mounting speculation that the central bank will introduce additional stimulus before year-end. Probably not this time, but anyway, speculative interest will be scrutinizing Bailey’s comments for any hint on the issue.

GBP/USD short-term technical outlook

The GBP/USD pair traded around 1.2960 ahead of Fed’s announcement and stands in the same area as the day comes to an end. The 4-hour chart shows that the pair has further advanced above a now bullish 20 SMA, although it remains below the 100 and 200 SMA, both converging around 1.3110/20. Technical indicators eased from their intraday highs alongside price, but remain within positive levels. Overall, the risk of a steeper decline seems contained, mainly with positive Brexit developments.

Support levels: 1.2915 1.2860 1.2810  

Resistance levels: 1.3000 1.3050 1.3095

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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD holds gains above 1.1850 amid tepid market mood

EUR/USD is trading above 1.1850, holding onto recent gains The uptrend, however, at risk as coronavirus cases rise across the Eurozone. New lockdown restrictions may force the ECB to adopt a stronger dovish stance. Focus shifts to Powell's speech, EZ Preliminary PMIs. 


GBP/USD hovers around 1.2950 amid likely virus curbs

GBP/USD stays well bid near  mid-1.2900s following three successive failures to cross 1.3000 during last week. UK’s health authorities mull lockdown restrictions. Chancellor Sunak may extend business support loans. Fedspeak eyed amid a light calendar. 


USD/JPY drops to over six-month lows, fast approaching 104.00 mark

USD/JPY witnessed some follow-through selling for the sixth consecutive session on Monday. The USD was being pressured by fading hopes of another round of the fiscal stimulus measures. Resurgent COVID-19 cases benefitted the safe-haven JPY and contributed to the offered tone.


Gold jumps back on the bids above $1950 amid risk-aversion

Gold is back on the bids above $1950 amid growing coronavirus fears induced risk aversion. Gold's multi-week consolidation in a narrowing price range could end with a bullish breakout, as a widely-tracked daily chart indicator is about to turn bullish. 

Gold News

WTI buyers attack $41.00 amid US-Iran tension, escalating virus woes

WTI remains heavy below 50-day SMA, drops from $41.18 to begin the week. The energy benchmark keeps trailing 50-day SMA for over two weeks while taking clues from the US-Iran tussle and the coronavirus (COVID-19) headlines. Hopes of further stimulus, China’s optimism favor energy bulls.

Oil News

Forex Majors