GBP/USD can't seem to shed the 1.33 handle as UK markets return from their long weekend

Sterling remains flat for the week with London back from a long weekend today.
A thin economic calendar is going to keep the Sterling exposed to whips from headlines and overall market sentiment.

Joshua Gibson FXStreet

The GBP/USD has seen a quiet Asia session for Tuesday, dipping into Monday's low near 1.3295 before resuming trading near 1.3320.

The Sterling saw little action for the new week with UK institutions off for a long weekend in celebration of the Spring Bank Holiday, and GBP liquidity will return in-force today for the upcoming London market session.

Despite the UK session's return to the foray today, Tuesday is unlikely to bring much action for the GBP/USD, with only the BRC Shop Price Index on the data docket, dropping late at 23:01 GMT (last reading -1%). Market flows, fueled by fickle risk appetite, are likely to remain the key driver for the major pair.

The rest of the week is similarly devoid of any high-tier data or news releases for the Sterling, and Brexit headlines can be expected to continue to keep a lid on any kind of meaning bullish comeback for the GBP as Prime Minister Theresa May continues to have a hard time swinging a Brexit deal that keeps both sides of the Channel happy.

GBP/USD levels to watch

As FXStreet's own Valeria Bednarik highlighted recently regarding the pair's technical stance: "the short-term picture for GBP/USD is bearish despite the holiday left it with no directional strength, given that in the 4 hours chart, a modesty bearish 20 SMA, currently at 1.3340 keeps capping the upside, while technical indicators have turned modestly higher, but remain well below their daily highs and within negative levels."

Support levels: 1.3280 1.3245 1.3210

Resistance levels: 1.3340 1.3385 1.3410

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.