GBP/USD Current price: 1.3350
- Market players are leaving aside Brexit woes, with only a few weeks to reach a deal.
- UK‘s chief negotiator Frost ready to recommend leaving without an agreement.
- GBP/USD is overbought but without signs of upward exhaustion.
The GBP/USD pair broke higher at the end of the week to reach a fresh 2020 high of 1.3356, ending the week a handful of pips below this last. The absence of UK macroeconomic data and Brexit-related headlines played in favor of the sterling’s advance. However, there are only a few weeks left to seal a deal as EU officers said that they would need a couple of months to ratify any treaty before the end of the transition period on December 31.
Talks are stalemate. The EU refuses to discuss any other issue unless the UK engages on state aid, while UK‘s chief negotiator, David Frost, has said that he will recommend leaving without a deal if demands persist that the UK should align with its rules on state aid. So far, the market seems this negative factor is being left aside. The kingdom won’t publish macroeconomic data this Monday.
GBP/USD short-term technical outlook
The GBP/USD pair is bullish according to the daily chart, as it accelerated its advance beyond a mildly ascendant 20 DMA. Technical indicators, in the meantime, present upward slopes within positive levels. In the shorter-term, and according to the 4-hour chart, the pair is overbought but without signs of bullish exhaustion. The 20 SMA has accelerated north above the 100 SMA, both well below the current level, while the Momentum indicator heads firmly higher and the RSI consolidates around 74.
Support levels: 1.3320 1.3285 1.3250
Resistance levels: 1.3360 1.3400 1.3445
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
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.