- The Sterling is holding near the week's highs as Brexit concerns get cooled off on PM May taking the reigns of EU negotiations.
- A thin economic calendar for Wednesday leaves overall market sentiment to decide the pair's direction.
The GBP/USD is trading just beneath 1.3150 ahead of Wednesday's London market session. The Sterling dipped to a low of 1.3070 on Tuesday, but managed to stage a rebound to bring the week into positive territory, and a new high has been marked in for the week at 1.3160, giving today's bulls a target to aim for.
Wednesday's calendar for the GBP/USD is on the thin side for both the Sterling and the Greenback, with BBA Mortgage Approvals at 08:30 GMT and CBI Distributive Trades Survey at 10:00 GMT, both low-tier indicators for the UK, while the most important figure for the upcoming US session will be monthly New Home Sales figures for June at 14:00 GMT, forecast to contract from 689 thousand to 670 thousand.
After months of tail-chasing and squabbling within the UK's parliament, Prime Minister Theresa May has announced that she will be personally leading up negotiations with the European Union on securing trade agreements in preparation for Brexit, but with March 2019 fast approaching and little leg-work done on establishing a safe trade conduit between the UK and the EU, good tidings on the Brexit are having a muted effect, and the Sterling remains close to the bearish side as action keeps the pair restrained near the week's opening prices.
GBP/USD Levels to watch
Markets are spreading on where the GBP/USD should head next as technical indicators begin to middle with little action in either direction, and as FXStreet's own Valeria Bednarik noted, "the 4 hours chart shows that the pair met buyers in an approach to a mild bullish 20 SMA, but also that it holds below a bearish 200 EMA, while technical indicators turned sharply lower, now nearing their mid-lines, not enough to confirm a bearish extension but clearly indicating limited buying interest."
Support levels: 1.3080 1.3035 1.3000
Resistance levels: 1.3155 1.3195 1.3240
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
Editors’ Picks
USD/JPY off lows, stays pressured near 142.50 ahead of BoJ policy decision
USD/JPY has bounced off lows but remains pressured near 142.50 in the Asian session on Friday. Markets turn risk-averse and flock to the safety in the Japanese Yen while the Fed-BoJ policy divergence and hot Japan's CPI data also support the Yen ahead of the BoJ policy verdict.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold price treads water below record peak, awaits Fedspeak
Gold price hovers below the all-time peak touched earlier this week amid a bearish US Dollar and rising bets for more upcoming rate cuts by the Fed. Concerns over an economic downturn in China keep the safe-haven Gold price afloat. Fedspeak remains on tap.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV
Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD (RUSD) stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.