GBP/USD bears catch a breath ahead of UK PM Johnson’s emergency meeting

  • GBP/USD trades with modest losses.
  • Doubts upon the further EU-UK talks remain elevated amid coronavirus fears.
  • Cable traders await further measures by the Tory government after Wednesday’s heavy stimulus.

GBP/USD registers modest losses, currently trading around 1.2815, while heading into the London open on Thursday. The pair fails to cheer the broad US dollar weakness after US President Donald Trump’s stimulus. The reason could be the UK PM Boris Johnson’s further announcements to tackle the coronavirus (COVID-19).

Having fired a double-barrel attack on the deadly virus, the Tory leader called for an emergency meeting to escalate the efforts to counter the outbreak. The meeting, which will be held around 13:15 GMT as per Reuters, could convey the decision move to the so-called "delay phase" from "contain".

The reason could be traced from The Guardian’s news that raised doubts over the further EU-UK Brexit talks, scheduled for taking place during the next week in London, as confirmed by the Duchy of Lancaster Michael Gove. In doing so, the pair paid a little heed to the UK’s RICS Housing Price Balance that rallied to the four-year high.

On the other hand, the US President Donald Trump’s failure to provide a major push to the spending got higher attention. Additionally weighing on the risk-tone could be the fears spread by the CNBC that the US cases could rise to millions.

The British PM Johnson is less expected to announce any major stimulus after the BOE joined the budgetary push to defeat the virus the previous day. However, the Tory leader is famous for providing surprises and hence traders should wait for the actual announcements.

On the economic calendar, the US PPI and Jobless Claims can entertain the momentum traders. “The overall PPI was likely held down by the weakening in energy prices, similar to the pattern in the CPI (TD -0.2%). The core measures were probably fairly weak as well following above-trend readings in January,” said TD Securities.

Technical Analysis

100-day SMA near 1.3000 acts as the nearby resistance while 50% Fibonacci retracement of the pair’s September-December 2019 upside and 200-day SMA, close to 1.2735 and 1.2710 respectively, can please the sellers during the further declines.

Additional important levels

Today last price 1.2814
Today Daily Change -6 pips
Today Daily Change % -0.05%
Today daily open 1.282
Daily SMA20 1.2935
Daily SMA50 1.3
Daily SMA100 1.2993
Daily SMA200 1.2711
Previous Daily High 1.2976
Previous Daily Low 1.2805
Previous Weekly High 1.3049
Previous Weekly Low 1.2741
Previous Monthly High 1.3204
Previous Monthly Low 1.2726
Daily Fibonacci 38.2% 1.2871
Daily Fibonacci 61.8% 1.2911
Daily Pivot Point S1 1.2758
Daily Pivot Point S2 1.2696
Daily Pivot Point S3 1.2587
Daily Pivot Point R1 1.293
Daily Pivot Point R2 1.3039
Daily Pivot Point R3 1.3101



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD holds near mid-1.1600s after German IFO data

EUR/USD continues to trade in the positive territory around 1.1650 as investors don't seem to be paying much attention to the soft German IFO data. The dollar remains on the back foot but losses are limited by rising T-bond yields.


GBP/USD drops towards 1.3750 as dollar rebounds

GBP/USD is falling towards 1.3750, undermined by the US dollar bounce,  as the Treasury yields recover ground. UK's Frost hints at compromise on Northern Ireland’s post-Brexit trade rules. BOE-speak, China news in focus. 


XAU/USD looks north, with eyes on $1814 and $1820

Gold price eyes a sustained move above $1800 amid USD weakness. Market sentiment remains mixed ahead of a critical week.

Gold News

Crypto markets coil up for an explosive move

Bitcoin price correction seems to be holding above $60,000, but fear of an extended pullback persists. Ethereum price coils up between $3,900 and $4,200, preventing a retracement. Ripple price consolidates in a bullish pennant, suggesting a 26% ascent is likely.

Read more

Wall Street Week Ahead: Huge week of earnings ahead AAPL, MSFT, GOOGL, AMZN, FB

Equity markets remain elevated with more all-time highs on Thursday for the broader S&P 500 while the Dow registered new highs on Wednesday and Thursday. So far late into Friday's session, the markets are seeing some profit-taking to end a solid week.

Read more