GBP/USD Current Price: 1.3032

  • UK PM Johnson believes a trade deal can be achieved with the EU by year-end.
  • UK annual inflation seen at 1.5% in December, matching the previous estimate.
  • GBP/USD recovering some ground, but at risk of falling further.

The GBP/USD pair recovered from a fresh multi-week low of 1.2954, as the greenback weakened, initially weighed by risk-averse headlines related to the US trade relationship with its European counterparts. The Pound retained its gains amid renewed demand for high-yielding assets during the American afternoon, as Wall Street rallied on the back of solid earnings reports. The Sterling benefited from comments from UK PM Johnson, who said that he considers “very likely” the kingdom will get a “comprehensive trade deal with the EU by year-end.”

Among other things, PM Johnson said that he cannot agree to any “request for a transfer of power that would lead to further independence referendum,” referring to Scottish PM Sturgeon’s request to hold another Scottish independence referendum. This Wednesday, the UK will release December Inflation figures. The annual CPI is foreseen at 1.5% in December, while the core reading is expected to print 1.7%, both matching the previous estimates.

GBP/USD short-term technical outlook

The GBP/USD pair recovered and settled above the 1.3000 figure, although the short-term picture indicates that the risk is skewed to the downside, as the pair remains below the 23.6% retracement of its latest daily decline at 1.3050. In the 4-hour chart, the pair is currently battling with its 20 SMA, and below the larger ones, while technical indicators head nowhere just below their midlines.

Support levels: 1.2995 1.2960 1.2925

Resistance levels:1.3050 1.3100 1.3140

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD near daily lows with mixed US data

The EUR/USD pair continues trading just above the 1.1000 level, as US Durable Goods Orders rose by 2.4%, largely surpassing the market’s expectations, although core readings plummeted in the red.

EUR/USD News

GBP/USD unable to recover, barely above 1.3000

GBP/USD trades a handful of pips above the critical 1.3000 figure as looming BOE and Brexit weigh on market mood while the dollar remains the strongest.

GBP/USD News

Bitcoin moving on the razor edge

Yesterday's positive day along the crypto board has brought the BTC/USD pair to the borderline between a bearish market and a free space where it can grow again in search of new historical highs. 

Read more

WTI bounces off lows, back above $53.00/bbl

After hitting new lows in levels last seen in early October 2019 near $52.00, prices of the WTI have managed to regains some attention and have retaken the $53.00 mark per barrel.

Oil News

USD/JPY Forecast: Consolidating at lows, bearish

Coronavirus-related fears and upcoming first-tier event keeping investors in cautious mode. US Durable Goods Orders seen posting a tepid advance in December. USD/JPY at risk of resuming its decline once below 108.65.

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures