GBP/USD Current price: 1.3843
- Tension with the EU amid Northern Ireland barriers hurt the pound.
- UK Q1 Gross Domestic Product expected to be confirmed at -1.5% QoQ.
- GBP/USD is poised to extend its decline toward the 1.3700 price zone.
The GBP/USD pair returned to its bearish path on Tuesday, ending the day in the 1.3840 price zone after bottoming for the day at 1.3813. The slide was linked to the dollar’s demand rather than UK news. Anyway, coronavirus and Brexit-related headlines keep affecting Sterling. UK Prime Minister Boris Johnson’s spokesman said that the government expects to agree with the EU an extension to the grace period on custom checks on chilled meats heading to Northern Ireland soon.
Data wise, the UK published May Mortgage Approvals, which improved to 87.5K, beating expectations. Consumer Credit in the same month was also better than anticipated, printing at £0.28 billion. On Wednesday, the country will publish the final reading of the first quarter Gross Domestic Product, expected to be confirmed at -1.5%, and Total Business Investment for the same quarter.
GBP/USD short-term technical outlook
The GBP/USD pair is poised to extend its decline in the near-term. The 4-hour chat shows that the 20 SMA heads firmly lower, currently at around 1.3880, below the longer moving averages, which also head south. Technical indicators, in the meantime, have recovered modestly from their daily lows but remain within negative levels, reflecting limited buying interest. A steeper decline seems likely if the pair slides below the 1.3780 price zone, where it bottomed last week.
Support levels: 1.3810 1.3780 1.3730
Resistance levels: 1.3865 1.3905 1.3950
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
AUD/USD holds recovery gains near 0.6400 after hot Australian inflation data
AUD/USD is keeping its recovery mode intact near 0.6400 after Australia’s monthly Consumer Price Index (CPI) rose 5.2% in the year to August 2023, as expected. Investors assess the inflation data ahead of next week's RBA policy meeting.
EUR/USD hits fresh six-month lows near 1.0550
EUR/USD is holding lower ground near 1.0550, sitting at fresh six-month lows in the Asian session on Wednesday. The US Dollar remains firm, benefiting from risk aversion, maintaining the downward pressure on the pair.
Gold appears a ‘sell on bounce’ trade amid a Death Cross
Gold price is trading close to the five-week lows of $1,899 set on Tuesday, as the United States Dollar (USD) bulls take a breather amid a minor correction in the US Treasury bond yields from sixteen-year highs.
Litecoin price is failing recovery as Whales pull back to December 2020 lows
Litecoin price was showing some signs of recovery about two weeks ago, but it failed to sustain the bullish momentum, resulting in minor corrections. While broader market cues are to be blamed for this, a lot of the credit goes to the whales, too, whose disappointing performance has impacted the altcoin.
U.S. government shutdowns & U.S. Dollar implications
A potential U.S. government shutdown that could start October 1st looms, the chances of which are more or less seen as a coin flip at this point. Should a shutdown transpire, there could be a negative impact of the U.S dollar, albeit one that is likely to be modest and short-lived.