GBP/USD: 1.2829 tested amid notable USD demand, what’s next?


The bears remain in complete control, now pushing the GBP/USD pair to test two-month lows of 1.2829 en route 1.2800 levels.

GBP/USD ignores upbeat UK public finances data

The spot once again ran into offers just ahead of 1.29 handle, and from there dropped sharply towards 1.28 handle, as the US dollar buying across the board remains unabated amid rising Treasury yields and repositioning, with markets gearing up for the much-awaited Jackson Hole Symposium.

The greenback staged a solid comeback against its main competitors, reversing almost 50% of the 2-day declines, fuelled by renewed US political drama and fiscal issues combined with dwindling Fed rate hike bets this year.

Meanwhile, Cable found little impetus from the UK’s public sector net borrowing data, which showed that Britain unexpectedly posted its first budget surplus for any July since 2002. Also, better-than expected UK’s CBI industrial orders data failed to rescue the GBP bulls, leaving the rate meandering near two-month troughs.

Focus now shifts towards the sentiment on the Wall Street and developments in the Washington for fresh momentum on the prices.

GBP/USD levels to consider             

“Should the decline accelerate through 1.2831, last week's low, the pair has scope to extend its decline down to 1.2790, en route to the 1.2750 region, with the decline having more to do with Pound's weakness than dollar's strength. To the upside, 1.2880 is the immediate resistance, followed by the 1.2920/30 region, where selling interest remains strong,” Valeria Bednarik, Chief Analyst at FXStreet explained.

Share: Feed news

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


Recommended content

Editors’ Picks

AUD/USD attracts some sellers below 0.6800 ahead of Chinese data

AUD/USD attracts some sellers below 0.6800 ahead of Chinese data

The AUD/USD pair trades on a weaker note around 0.6770, snapping the four-day winning streak during the early Asian session on Monday. The recovery of the US Dollar provides some support to the pair.

AUD/USD News

EUR/USD holds below 1.0900 as US political violence boosts US Dollar

EUR/USD holds below 1.0900 as US political violence boosts US Dollar

EUR/USD attracts some sellers around 1.0885 during the early Asian session on Monday. The major pair edges lower amid risk aversion, triggering a fresh bid of the US Dollar. The Eurozone May Industrial Production, July NY Empire State Manufacturing Index will be released on Monday, along with the Fed's Mary Daly speech. 

EUR/USD News

Gold edges lower near $2,400 on US Dollar rebounds

Gold edges lower near $2,400 on US Dollar rebounds

Gold price trades in negative territory near $2,405 on Monday during the early Asian session. The hotter-than-expected Wholesale price inflation in the United States for June weighs on the precious metal. 

Gold News

Shiba Inu erases losses from past week, eyes 18% gains

Shiba Inu erases losses from past week, eyes 18% gains

Shiba Inu traders are anticipating the roll-out of futures contracts, products like Exchange Traded Funds that could boost the asset’s utility. An IBC report shows the contract is expected to be listed post Monday, July 15.

Read more

Trump Assassination Attempt: Gold, stocks set to decline on Republican sweep speculation Premium

Trump Assassination Attempt: Gold, stocks set to decline on Republican sweep speculation

Fist in the air and on with the fight - that has been the historic picture that former President Donald Trump shortly after he survived an assassination attempt on his life. Trump was injured in his ear but seems to have come out stronger politically from the shocking political violence. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures