GBP/USD Current price: 1.2380
- EU’s Barnier accused the UK of making unacceptable demands on financial services.
- UK Q1 Gross Domestic Product downwardly revised to -2.2% from -2.0%.
- GBP/USD with a limited bullish potential despite a substantial intraday advance.
The GBP/USD pair recovered some ground after reaching a monthly low on Monday, ending the day around the 1.2380 level. The advance was pure dollar’s weakness, as UK data was worse than expected while Brexit talks were tense. The UK Q1 GDP was revised to -2.2% from 2.0%, while Business Investment in the same quarter was down by 0.3%. The Current Account in the three months to March posted a deficit of £-21.1 B much worse than the expected £-15.
Also, EU’s chief negotiator Michel Barnier accused the UK of making unacceptable demands on financial services, saying that the kingdom is trying to secure “easy” access to the bloc’s single market. His comments indicate that no progress has been made in Brexit talks. Meanwhile, UK PM Johnson announced plans to revive the UK’s economy, pledging to solve social care issues and educational inequality, while supporting local companies. The UK macroeconomic calendar will have little to offer this Wednesday.
GBP/USD short-term technical outlook
The GBP/USD pair is trading just above a still bearish 20 SMA, although below the larger ones, in its 4-hour chart. Technical indicators have recovered from oversold readings but lost bullish strength after reaching their midlines, somehow suggesting a limited buying interest. The pair has struggled around the 200 SMA before falling, which currently stands at 1.2425. The level is the immediate resistance, and bulls could feel a bit more confident once beyond it.
Support levels: 1.2330 1.2290 1.2250
Resistance levels: 1.2425 1.2460 1.2505
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 rises to two-day high ahead of Aussie CPI
The Aussie Dollar recorded back-to-back positive days against the US Dollar and climbed more than 0.59% on Tuesday, as the US April S&P PMIs were weaker than expected. That spurred speculations that the Federal Reserve could put rate cuts back on the table. The AUD/USD trades at 0.6488 as Wednesday’s Asian session begins.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure
Bitcoin (BTC) price strength continues to grow, three days after the fourth halving. Optimism continues to abound in the market as Bitcoiners envision a reclamation of previous cycle highs.
Australia CPI Preview: Inflation set to remain above target as hopes of early interest-rate cuts fade
An Australian inflation update takes the spotlight this week ahead of critical United States macroeconomic data. The Australian Bureau of Statistics will release two different inflation gauges on Wednesday.