GBP/USD Current price: 1.2548

  • Boris Johnson still the favorite to succeed Mrs. May as Tory leader.
  • GBP/USD bounced just modestly from a fresh multi-month low of 1.2505.

The British Pound remained under pressure throughout the day, falling against its American rival to a fresh multi-month low of 1.2505, on the back of firmer dollar' demand, later trimming losses and rising to the 1.2550 on the back of a better market mood. A second round of the Tory leadership's contest took place this Tuesday, with Boris Johnson coming first again, leading the list with 126 votes. The second was Jeremy Hunt who got 46 votes, while Dominic Raab got ousted by becoming last, leaving now six possible candidates to replace May. The pair showed little reaction to the news, rather depending on dollar's increased or decreased intraday demand. Later this week, the Bank of England will have its monetary policy meeting, although no surprises are expected from Carney & Co.

The GBP/USD pair recovery remains as a mere correction according to technical readings, as despite finishing the day with gains, it has posted a fourth consecutive lower low and lower high daily basis. Furthermore, and in the 4 hours chart, technical indicators have recovered from their lows but remain within negative levels, with the RSI having already lost upward strength at around 34. In this last timeframe, the pair is developing below a firmly bearish 20 SMA, currently around 1.2595which extends its decline below the larger ones.

Support levels: 1.2510 1.2475 1.2440

Resistance levels: 1.2605 1.2630 1.2670

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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

AUD/USD battles 0.73 on Biden transition news, mixed Aussie trade data

AUD/USD keeps its range around 0.7300 amid mixed Australian trade data and the upbeat market mood. The risk sentiment got a boost following reports that the US GSA has started the formal Biden transition process. S&P 500 futures rise 0.50%. RBA Debelle's speech awaited. 

AUD/USD News

Gold in bearish consolidation below $1840, remains vulnerable

Gold (XAU/USD) is nursing losses in Tuesday’s Asian trading, having slumped 2% on Monday to reach the lowest levels in four months at $1831. Vaccine progress, stronger US data hammer gold prices. Focus on vaccine updates and risk sentiment for fresh impetus.

Gold news

USD/JPY: Rises for third day on Biden transition news, eyes BOJ’s Kuroda

USD/JPY trims early-Asian losses as Tokyo open welcomes the risk-on mood. Trump concedes defeat, ex-Fed Chair Yellen likely be the next Treasury Secretary. Vaccine hopes, stimulus expectations and Brexit optimism favor bulls.

USD/JPY News

Bitcoin risks a correction to $12,000

Peter Brandt, author, and publisher of the Factor Report, has exited around 50% of his Bitcoin position. The veteran trader believes Bitcoin might be poised for a correction to $12,000 in the near future.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex Majors

Cryptocurrencies

Signatures