GBP/USD Current price: 1.3928

  • UK finance minister Rishi Sunak is likely to announce additional help for business.
  • Markit to confirm that manufacturing output in the UK expanded in January at a solid pace.
  • GBP/USD corrected extreme overbought conditions, further slides unclear.

The GBP/USD pair fell for a second consecutive day, closing the week in the red at 1.3928. A scarce UK macroeconomic calendar favored the slump, as there were no reasons to buy the pound. The market has already priced in better progress in coronavirus immunization in the UK, which could be translated into a sooner economic comeback. Profit-taking on the last trading day of the month may have also taken its toll after the pair reached an almost three-year high mid-week.

Over the weekend, news pointed out that UK finance minister Rishi Sunak would announce this week 5 billion pounds of additional grants to help businesses hit by the pandemic in his budget statement next Wednesday. Markit will release the final reading of the UK Manufacturing PMI this Monday, foreseen at 54.9. The country will publish January money data, with Mortgage Approvals expected at 96K.

GBP/USD short-term technical outlook

From a technical point of view, the GBP/USD pair is in a corrective decline. In the daily chart, the pair develops above bullish moving averages. The 20 SMA provides dynamic support at 1.3860, with a break below it opening the doors for a steeper decline. Technical indicators retreated sharply from overbought readings, maintaining their bearish slopes but within positive levels. In the 4-hour chart, the pair is developing below a bearish 20 SMA and just above a bullish 100 SMA. Technical indicators remain near oversold levels, the Momentum bouncing modestly, but the RSI maintaining its bearish slope.

Support levels: 1.3880 1.3830 1.3775

Resistance levels: 1.3965 1.4000 1.4040

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.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD slips below 1.2050 amid dollar strength

EUR/USD is trading below 1.2050, losing some of its gains as the dollar shrugs off the fresh drop in yields and rises. European regulators said the benefits of J&J's vaccine outweigh the risks.


GBP/USD retreats from 1.40 despite upbeat UK job figures

GBP/USD is extending its falls after retreating from 1.40 as the dollar edges higher. Earlier, the UK reported a drop in the unemployment rate to 4.9%, better than expected. The Claimant Count Change also beat estimates with 10.1K. 


XAU/USD tests key Fibo resistance at $1,775

XAU/USD rebounds after closing in the negative territory on Monday. 10-year US Treasury bond yield is edging lower on Tuesday. Additional gains are likely if gold manages to clear $1,775 resistance.

Gold News

Ethereum price on cusp of massive breakout if key level holds

Ethereum price had a significant 23% correction in the past week but holds above a key support level on the 12-hour chart. The digital asset still has robust on-chain metrics supporting it and aims for a rebound.

Read more

S&P 500 (SPX) Update: Equity markets take a well deserved breather, crypto stocks slide

Equity markets took a much-needed break from setting record highs on Monday. Tesla suffered a steep 5% fall after reports of a crash with no one at the wheel. Have a Coke and a smile was up 1% as KO smashed earnings estimates.

Read more