GBP/USD Forecast: Waiting for news that doesn’t come

Valeria Bednarik FXStreet

GBP/USD Current Price: 1.2839

UK inflation came in below the market’s expectations in October.
Conservatives keep leading polls, underpinning hopes for a deal Brexit.
GBP/USD unable to attract investors, neutral above 1.2800.

The GBP/USD pair is ending the American session with a second consecutive daily doji around 1.2850. The market keeps ignoring UK data, which, this time, missed the market’s expectations. According to the official release, inflation in the kingdom was down by 0.2% in October, and up by 1.5% when compared to a year earlier, missing the market’s expectations. Core yearly inflation printed at 1.7% as expected and also matching the previous reading. Producer Prices were down by 0.1% in the month, and up by a modest 0.8% yearly basis.

There were no news in the Brexit/UK elections front, although the market remains confident the kingdom will avoid a hard-landing. Johnson’s Conservatives keep leading polls, and their victory will likely mean the Withdrawal Agreement will pass the Parliament. The UK will report October Retail Sales this Thursday, seen up by 0.2% in the month and by 3.7% when compared to October 2018.

GBP/USD short-term technical outlook

The GBP/USD pair is neutral-to-bearish, holding just above the 23.6% retracement of its latest daily run. In the 4 hours chart, the pair continues hovering between the 20 and 100 SMA, while the 200 SMA continues advancing below the current level. The RSI indicator, however, heads nowhere around its midline, while the Momentum indicator turned south, entering negative territory, rather indicating absent buying interest that increased selling pressure.

Support levels: 1.2820 1.2785 1.2750

Resistance levels: 1.2895 1.2920 1.2950

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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