GBP/USD Forecast: Future EU-UK trade relationship weighing on Pound

Valeria Bednarik FXStreet

GBP/USD Current Price: 1.2919

EU-UK trade talks taking centre stage ahead amid opposite views.
Light UK macroeconomic calendar left the pair in the hands of fears.
GBP/USD with the upside still limited by Brexit woes.

The GBP/USD pair was dominated by the greenback, falling to a daily low of 1.2886 on the back of fear dominating the financial world, later bouncing to recover the 1.2900 threshold as investors pared buying the overbought dollar. Meanwhile, EU-UK talks loom. Representatives from the EU have met this Monday to discuss a draft of the Union’s mandate ahead of the future relationship with the kingdom. In the UK, on the other hand, PM Johnson’s spokesman announced that the British mandate for Brexit negotiations will be published on Thursday. Each part has a different stance about what it wants from the future deal, as the UK seeks to break from EU rules while Brussels calls for a “level play field.”

The UK didn’t release macroeconomic data this Monday but will publish this Tuesday the CBI Distributive Trade Survey on realized sales for February, foreseen at 4% from 0% previously.

GBP/USD short-term technical outlook

The GBP/USD pair is closing the day in the red, technically neutral-to-bearish in the short-term, as, in the 4-hour chart, the pair struggling to advance above a bearish 20 SMA, while below the larger ones. Technical indicators hover around their midlines, lacking clear directional strength. In bigger time frames, the pair retains its bearish stance and would need to recover well above 1.3000 to revert its negative stance.

Support levels:1.2880 1.2845 1.2800

Resistance levels: 1.2965 1.3000 1.3035

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

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.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.