GBP/USD Current Price: 1.2940
- Market’s focus on Brexit and UK elections, fearing a hung Parliament.
- A collapsing dollar was just enough to keep the pair afloat.
- GBP/USD neutral-to-bullish but signs of decreasing buying interest.
The Sterling Pound was the worst performer against the dollar this Monday, affected by weekend news indicating that Conservatives lead ahead of the December 12 election continues shrinking and pointing to a possible hung Parliament. Although the market was in a positive mood, the GBP/USD pair gapped lower at the weekly opening, extending its decline to 1.2895 during London trading hours.
The UK Markit Manufacturing PMI came in better than anticipated in November, at 48.9, although failed to boost the Pound. Dismal US data, on the other hand, helped it close the weekly opening gap, yet the pair is trading at Friday’s closing level, clearly indicating that the UK currency depends solely on Brexit. This Tuesday, the UK calendar includes November BRC Like-for-Line Retail Sales, seen down by 1.7% after posting a modest 0.1% advance in the previous month.
GBP/USD short-term technical outlook
The GBP/USD pair is neutral-to-bullish according to the 4-hour chart, as the pair is currently developing above all of its moving averages, although the 100 and 200 SMA are now converging below the 20 SMA, suggesting decreasing upside potential. Technical indicators hold above their midlines, the Momentum heading marginally higher but the RSI flat, also suggesting decreasing buying interest.
Support levels: 1.2915 1.2880 1.2845
Resistance levels: 1.2950 1.2990 1.3020
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 turns south toward 0.6400 after mixed Australian jobs data
AUD/USD has come under renewed selling pressure and turned south toward 0.6400 after Australian employment data pointed to loosening labor market conditions, fanning RBA rate cut expectations and weighing on the Aussie Dollar.
USD/JPY remains below 154.50 amid weaker US Dollar
USD/JPY keeps losses for the second successive session, trading below 154.50 in Asian trading on Thursday. The pair is undermined by the latest US Dollar pullback, Japan's FX intervention risks and a softer risk tone.
Gold retreats as lower US yields offset the impact of hawkish Powell speech
Gold prices retreated from close to weekly highs during the North American session on Wednesday amid an improvement in risk appetite. The bullish impulse arrived despite hawkish commentary by US Federal Reserve officials.
OMNI post nearly 50% loss after airdrop and exchange listing
Omni network lost nearly 50% of its value on Wednesday after investors dumped the token following its listing on top crypto exchanges. A potential reason for the crash may be due to the wider crypto market slump.
US stock continue to stumble as traders rethink rates
US stocks grappled with uncertainty on Wednesday in the wake of a cautious string of commentary from the US Federal Reserve officials. The S&P 500 is currently experiencing its longest non-bullish streak in months.