GBP/USD: Brexit headlines counter doji ahead of US consumer-centric data


  • GBP/USD remains in the range despite challenging Brexit headlines.
  • DUP refrains from support altering Irish backstop, EU leaders doubt PM Johnson’s performance.
  • US Retail Sales, Michigan Consumer Sentiment Index, trade/political headlines will be the key to watch.

Despite flashing a doji candle on yesterday, GBP/USD stays range-bound for almost a week while taking rounds to 1.2345 ahead of the London open on Friday.

Even if yesterday’s doji candle signals reversal of present recovery, struggle by the United Kingdom’s (UK) Prime Minister (PM) Boris Johnson seems to please the Cable buyers as it finally indicates either a soft Brexit or no departure at all.

The European leader has been disappointed with the UK’s working style and claimed no strong solution have come up from Britain. On the other hand, speculations that the Democratic Unionist Party (DUP) will support a mild change in Irish backstop to ease Mr. Johnson’s pain were largely being torn down by the DUP leader.

Elsewhere, the UK PM is on his run-up to please the regional leader and another bi-weekly meeting will be held today. Though, no breakthrough is expected considering the closure of the parliament and Irish backstop situation.

On the other hand, the US Dollar (USD) might initially react to the expected weakness in August month Retail Sales figures but could later on recover based on likely upbeat print of consumer sentiment gauge for September.

Adding to note, the global market sentiment carries the previous risk-on amid the US-China trade positive gestures while equities and bond yields also follow the suit.

Technical Analysis

While 1.2300 and 1.2345 levels define the short-term range, overall weakness can’t be denied unless breaking 1.2380/85 area including July 17 low and current week high. On the contrary, , pair’s daily closing below 50-DMA level of 1.2275 can fetch the quote to an early-August high near 1.2210.

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.

Feed news

Latest Forex News

Editors’ Picks

AUD/USD: On the back foot below 0.6600 amid coronavirus fears

AUD/USD declines to 0.6592 during the early Monday morning in Asia. In doing so, the pair remains on the back foot while extending losses after the gap-down to 0.6600 portrayed at the start of this week’s trading session.

AUD/USD News

USD/JPY extends losses below 111.50 as coronavirus spreads outside China

USD/JPY declines to 111.45, with the intra-day low of 111.28, amid the initial Asian session on Monday. That said, the pair stays under pressure as coronavirus pushes traders towards risk-safety whereas the pullback in the USD.

USD/JPY News

What you need to know for the open: Coronavirus risk-off themes rule the waves

The coronavirus remains front and centre of the theme for forex at the start of this week. Friday's close leaves a consolidative tone for today's open, if not a risk-off bias which could continue to fuel a bid into the greenback.

Read more

XAU/USD extended its run claiming two more targets and eyes 1655.00

Gold has extended its run claiming two more targets at 1630.00 and 1640.85 towards the end of last week's session an increase of approximately 4% in the week's trading session. I think gold prices have entered a new trend.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures