|

GBP/USD Forecast: Brexit-related hopes lifted the Pound

GBP/USD Current price: 1.2339

  • The UK CBI Distributive Trades Survey on realized sales declined by 50% in May.
  • Rumours related to progress in talks between the EU and the UK lifted the Pound.
  • GBP/USD is holding on to gains, further advances expected once above 1.2370.

The GBP/USD pair run to 1.2362, its highest in two weeks, as the Pound got boosted by rumours about progress in Brexit talks. According to the latest headlines, the EU is willing to shift its stance on fisheries when talks resume next week, potentially opening the doors for other concessions between both parts. The UK released the CBI Distributive Trades Survey on realized sales, which declined by 50% in May, meeting the market’s expectations. Market’s optimism and rallying equities provided further support to the pair.  The UK calendar has nothing to offer this Wednesday.

GBP/USD short-term technical outlook

The GBP/USD pair retreated just modestly from the mentioned high to settle in the 1.2330 price zone. The 4-hour chart shows that the pair is correcting overbought conditions, although with the risk still skewed to the upside. Technical indicators have lost bullish strength but hold around their daily highs, while the pair is well above a now bullish 20 SMA, while also above the 100 SMA. The 200 SMA, however, capped the upside, providing dynamic resistance at around 1.2370.

Support levels:  1.2305 1.2260 1.2220

Resistance levels: 1.2370 1.2415 1.2450

View Live Chart for the GBP/USD

Author

Valeria Bednarik

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.

More from Valeria Bednarik
Share:

Editor's Picks

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold buyers hesitate amid holiday-thinned trading

Gold trades volatile, but within range, as US, China holidays-led thin trading exaggerates moves. The US Dollar extends range play into the US GDP week, with markets pricing at least two Fed rate cuts this year. Technically, Gold tests key support at $5,000; daily RSI still remains bullish.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.