GBP/USD Current price: 1.4171

  • Brexit and coronavirus-related concerns weighed on the pound.
  • The UK is expected to report a 2.4% monthly GDP growth for April.
  • GBP/USD recovered but lost momentum as it approaches the 1.4200 threshold.

The GBP/USD pair fell to 1.4072, its lowest in almost a month, as the pound was hit by Brexit and coronavirus-related headlines. Regarding the first, talks between  UK Brexit Minister David Frost and European Commission vice-president Maros Sefcovic to resolve differences over the Brexit deal broke up without a breakthrough on Wednesday. At the same time, speculation mounts that the kingdom will have to delay its planned reopening on June 21 amid the continued increase of new cases.

The pair recovered on the back of a weaker dollar as investors read past higher US inflation. The UK published the May RICS Housing Price Balance, which rose 83%, beating the expected 77%. On Friday, the kingdom will publish April Industrial Production and Gross Domestic Product, the latter foreseen at 2.4% MoM. The country will also publish the Goods Trade Balance for the same month.

GBP/USD short-term technical outlook

The GBP/USD pair pressures a daily high at 1.4173, but its bullish potential is limited. The 4-hour chart shows that the pair is just above its 20 and 100 SMAs, both directionless and converging around 1.4150.  Technical indicators recovered from near oversold readings and entered positive territory, but lost directional strength afterwards, now consolidating just above their midlines. The 200 SMA heads firmly higher and acted as dynamic support at around 1.4070.

Support levels: 1.4150 1.4110 1.4070  

Resistance levels: 1.4210 1.4250 1.4290

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. 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.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD struggles around 1.19 amid Fed-fueled dollar strength

EUR/USD is under pressure around 1.19, as the dollar remains on the offensive following the Federal Reserve's hawkish decision on Wednesday. The bank is set to debate cutting down its bond buys and signaled raising rates sooner than anticipated. 

EUR/USD News

GBP/USD tumbles below 1.39 on weak UK data, dollar strength

GBP/USD has been extending its decline, sliding under 1.39. UK retail sales disappointed with -1.4% in May and the rapid spread of the Delta variant in the UK is also weighing on sterling. The US dollar remain robust after the Fed's hawkish decision.

GBP/USD News

GBP/USD tumbles below 1.39 on weak UK data, dollar strength

GBP/USD has been extending its decline, sliding under 1.39. UK retail sales disappointed with -1.4% in May and the rapid spread of the Delta variant in the UK is also weighing on sterling. The US dollar remain robust after the Fed's hawkish decision.

GBP/USD News

Ripple fears of a major decline are unwarranted

XRP price remains locked in a range between the psychologically important $1.00 and the neckline of a multi-year inverse head-and-shoulders pattern at $0.76. However, a lack of technical clues leaves frothy forecasts on the sideline until directional confirmation can be gleaned from the charts.

Read more

Where next for markets after the Fed shocker

The Fed surprised markets with an abrupt hawkish shift that has triggered substantial volatility in currency markets. Valeria Bednarik and Yohay Elam explain the surprise, discuss technical level, the next moves in FX and beyond.

Read more

Majors

Cryptocurrencies

Signatures