- Sterling remains suspended in May's range, unmoved as Brexit headlines continue to vex traders.
- The week is set to cap off a lack of movement, but next week brings CPI figures.
The GBP/USD is still trading into 1.3500 as Friday's London market session rounds the corner, and the Sterling is set wrap up a rough week of trading against the US Dollar.
The Sterling caught some buyers at the beginning of the week afer news broke that the UK was prepared to remain in the EU customs union post-Brexit beyond 2021 if necessary to avoid a 'hard-Brexit' scenario, but UK Prime Minister Theresa May talked down the news, stating that the UK would certainly be leaving the customs union and the EU.
Earnings figures earlier in the week failed to inspire confidence in the GBP, and an otherwise quiet week with little economic data on the docket has left the GBP/USD to cycle within May's range around the 1.3500 major handle, and traders will have to look forward to Wednesday's CPI figures next week for inspiration.
GBP/USD levels to watch
FXStreet's Chief Analyst, Valeria Bednarik, took note of the GBP/USD 's range, and points out that indicators are still pointing towards a bearish resolution to the current technical stance: "the pair continues trading inside the well-limited range that extends since early this month, with no clear short-term directional clues, given that in the 4 hours chart, it holds around a marginally bearish 20 SMA while technical indicators remain within negative territory. The risk is leaned to the downside, yet a break below 1.3450 the low set this week is required to anticipate additional declines ahead."
Support levels: 1.3490 1.3450 1.3410
Resistance levels: 1.3520 1.3570 1.3610
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
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.