The GBP/USD pair gained some positive traction during the early part of 2019 but then recorded some heavy losses over the subsequent six months and dropped to levels below the key 1.20 psychological mark in early September. The pair then rallied nearly 12%, hitting its highest level since May 2018 during the latter half of December in reaction to a landslide victory for the incumbent Conservative Party in the most important UK Parliamentary elections on December 12. The outcome is expected to break the longstanding gridlock and provide a clear path for ratification of the Withdrawal Agreement before the January 31, 2020 deadline.
GBP/USD: Aims to revisit 200-hour SMA, immediate support trendline
GBP/USD registers mild losses while trading around 1.3045 during Wednesday’s Asian session. The pair earlier reversed from 50% Fib retracement of its fall from Jan 07 to 14. A two-week-old falling trend line adds to the resistance.
Latest GBPUSD News
The GBP/USD pair is trading at around the 23.6% retracement of its latest daily slump at 1.3050, and intraday charts indicate a limited bullish potential at the time being, moreover considering the price stalled below last week’s high at 1.3118. In the 4-hour chart, the pair is currently developing between directionless moving averages, while the Momentum indicator stands pat around its 100 level. The RSI, on the other hand, has resumed its decline but holds just above its mid-line. Overall, the pair is neutral as it has been hovering around the current level for over a week.
Support levels: 1.3000 1.2965 1.2930
Resistance levels: 1.3085 1.3120 1.3160
As expected, the unemployment rate remained steady at 3.8% in the three months to November, although average hourly earnings in the same period beat the market’s expectations by printing 3.2%. The number of people claiming for jobless benefits increased by 14.9K, much better than the 22.6K expected.
Meanwhile, speculative interest keeps waiting for some Brexit clarity. The UK is set to leave the Union by the end of this month, with the focus on whether if a future relationship can be established before year-end. This Wednesday, the UK will publish the CBI Industrial Trends Survey on orders for January, foreseen at -23 from the previous -28.