GBP/USD Current price: 1.3583
- UK GDP contracted by less than anticipated in November, Industrial Production plunged.
- UK PM Boris Johnson announced new travel restrictions starting on Monday.
- GBP/USD is at risk of extending its decline in the near-term.
The GBP/USD pair trimmed most of its weekly gains on Friday and settled in the 1.3580 price zone, amid risk-off fueling dollar’s demand. The pound enjoyed some temporal demand after the release of the monthly Gross Domestic Product figure, which came better than expected. According to the official release, the GDP contracted 2.6% in November against the -5.7% forecast. Still, UK data was far from encouraging. Industrial Production in the same month printed at -4.7% YoY, while the Goods Trade Balance posted a deficit of £-16.012 billion.
Meanwhile, the coronavirus pandemic keeps taking its toll on the kingdom, which reported over 55K new cases on Friday. Prime Minister Boris Johnson announced additional restrictive travel measures on Friday, to protect “against the risk of as yet unidentified new strains.” The UK will close all travel corridors starting this Monday, and anyone flying into the country will need to provide a negative coronavirus test.
GBP/USD short-term technical outlook
The daily chart for the GBP/USD pair shows that the latest slump fell short of turning it bearish, as it remains above all of its moving averages, while technical indicators turned lower, but remain above their midlines. The pair completed a pullback to a daily descendant trend line broken last week. In the 4-hour chart, the pair found support around its 100 SMA, currently at 1.3570, but technical indicators maintain their bearish slopes within negative levels, favoring another leg lower in the near-term.
Support levels: 1.3560 1.3510 1.3465
Resistance levels: 1.3615 1.3660 1.3710
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.