• GBP/USD has started the new week in a calm manner.
  • Technical fluctuations could be seen as trading opportunities ahead of key events.
  • Near-term technical outlook suggests that sellers remain on the sidelines.

GBP/USD has gone into a consolidation phase on Monday with trading conditions remaining thin due to the Early May holiday in the UK. Ahead of this week's highly-anticipated central bank meetings, the pair's fluctuations in the well-defined range could be seen as technical trading opportunities.

GBP/USD gained nearly 1% amid broad-based dollar weakness on Friday and snapped a six-day losing streak. The greenback, however, holds its ground early Monday amid a negative shift witnessed in risk mood and doesn't allow the pair to gain traction.

The global economic outlook continues to worsen with coronavirus-related restrictions in China weighing on the activity and escalating geopolitical tensions force investors to adopt a cautious stance. The US Dollar Index was last seen rising 0.2% on the day at 103.40.

Meanwhile, US stock index futures are up between 0.3% and 0.4% in the European session, suggesting that the dollar could lose its strength in case Wall Street's main indexes push higher in the second half of the day.

The US economic docket will feature the ISM Manufacturing PMI report for April later in the day and it would be surprising to see a significant market reaction to this data.

GBP/USD Technical Analysis

GBP/USD is moving sideways near 1.2570, where the Fibonacci 23.6% retracement of the latest downtrend is located, and faces first resistance at 1.2600 (psychological level). In case this level turns into support, the next recovery targets are located at 1.2660 (Fibonacci 38.2% retracement) and 1.2700 (psychological level, 50-period SMA on the four-hour chart).

On the downside, 1.2530 (20-period SMA) aligns as interim support ahead of 1.2500 (psychological level). A daily close below the latter could be seen as a bearish development and open the door for additional losses toward 1.2420 (static level).

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 Join Telegram

Recommended Content

Recommended Content

Editors’ Picks

EUR/USD jumps towards 1.0600 as USD wilts amid risk rebound

EUR/USD jumps towards 1.0600 as USD wilts amid risk rebound

EUR/USD is trading back above 1.0550,resuming its recovery towards 1.0600 in early Europe this Wednesday. The US dollar meets fresh supply as the risk rebound extends, despite looming recession fears. ECB Forum, US Durable Goods and Fedspeak eyed. 


GBP/USD consolidates gains below 1.2300 amid weaker USD, Brexit woes

GBP/USD consolidates gains below 1.2300 amid weaker USD, Brexit woes

GBP/USD is holding onto the latest upside below 1.2300 in early European trading, The risk-on mood dents the US dollar's safe-haven appeal while the UK presses on with changes to the Brexit deal despite EU opposition. US data awaited. 


Gold bulls aim for $1,850 on Russia news, softer USD

Gold bulls aim for $1,850 on Russia news, softer USD

Gold Price extends Friday’s recovery to $1,836 ahead of Monday’s European session. The precious metal’s upside moves could be linked to the softer US dollar, as well as chatters surrounding a ban on gold imports from Russia.

Gold News

SEC vs. Ripple: Brad Garlinghouse announces expansion out of the US if outcome is unfavorable

SEC vs. Ripple: Brad Garlinghouse announces expansion out of the US if outcome is unfavorable

XRP will expand out of the US if the payment giant faces a loss in the lawsuit. The community awaits the court's ruling on his speech and related documents. Analysts remain bullish on Ripple price

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!