GBP/USD clings to gains near 1.3280 region, moves little post-UK retail sales data


  • Renewed USD selling bias assisted GBP/USD to regain traction on Friday.
  • Bulls seemed rather unaffected by persistent Brexit-related uncertainties.
  • Better-than-expected UK retail sales data did little to provide any impetus.

The GBP/USD pair held on to its modest intraday gains near the 1.3275-80 region and had a rather muted reaction to the latest UK macro data.

The pair managed to regain some positive traction on the last day of the week and built on the previous day's goodish bounce of around 65 pips from sub-1.3200 level. The uptick was sponsored by the emergence of some fresh selling around the US dollar following the US Treasury Secretary Steven Mnuchin's decision to end pandemic relief funding for struggling businesses.

This comes on the back of worries about the economic fallout from the imposition of new COVID-19 restrictions in several US states and further fueled speculations for additional monetary easing by the Fed. The expectations were evident from the ongoing slide in the US Treasury bond yields, which undermined the USD through the first half of the trading action on Friday.

On the other hand, the British pound seemed rather unaffected by reports that the European Union leaders on Thursday demanded the EU to publish its no-deal Brexit plans. Also, the lack of progress on key sticking points – the so-called level playing field, fishing rights and state-aid rules – and stalled in-person Brexit talks did little to prompt any selling around the GBP/USD pair.

On the economic data front, the UK monthly retail sales recorded a growth of 1.2% MoM in October as against consensus estimates pointing to a flat reading. Meanwhile, the core retail sales (stripping the auto motor fuel sales) also came in better-than-expected and stood at 1.3% MoM, which remained supportive of the intraday uptick for the GBP/USD pair.

It, however, remains to be seen if bulls can capitalize on the move or the GBP/USD pair struggles to move back above the 1.3300 mark as investors await Brexit-related updates. This makes it prudent to wait for some strong follow-through buying before traders start positioning for any further near-term appreciating move, possibly towards mid-1.3300s.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3281
Today Daily Change 0.0007
Today Daily Change % 0.05
Today daily open 1.3274
 
Trends
Daily SMA20 1.3106
Daily SMA50 1.2989
Daily SMA100 1.2974
Daily SMA200 1.2718
 
Levels
Previous Daily High 1.3279
Previous Daily Low 1.3196
Previous Weekly High 1.3314
Previous Weekly Low 1.3107
Previous Monthly High 1.3177
Previous Monthly Low 1.282
Daily Fibonacci 38.2% 1.3247
Daily Fibonacci 61.8% 1.3228
Daily Pivot Point S1 1.322
Daily Pivot Point S2 1.3166
Daily Pivot Point S3 1.3137
Daily Pivot Point R1 1.3304
Daily Pivot Point R2 1.3333
Daily Pivot Point R3 1.3387

 

 

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: Bulls coming up for air into the Fed

EUR/USD is riding the trendline support towards the 61.8% Fibonacci retracement level of the prior bearish impulse. The crosses are also poised for upside continuations in EUR/JPY for instance were bulls need a clean break of 133.50.

EUR/USD News

GBP/USD: Bears in control, cling to multi-day support near 1.4080

The GBP/USD pair started the session on Wednesday on a lower note. The pair recovered from the low of 1.4034 on Tuesday to close near the 1.4080 mark, where it waivers now. Momentum oscillator hints at downside momentum.

GBP/USD News

EUR/USD: Bulls coming up for air into the Fed

EUR/USD is riding the trendline support towards the 61.8% Fibonacci retracement level of the prior bearish impulse. The crosses are also poised for upside continuations in EUR/JPY for instance were bulls need a clean break of 133.50.

EUR/USD News

Shiba Inu ready to reverse to $0.0000050

SHIB price faces stiff resistance ahead. Shiba Inu has had a difficult time recovering, suggesting that it may soon face rejection. In the following video, FXStreet's analysts evaluate where SHIB price could be heading next as Shiba Inu gets weaker.

Read more

FOMC Preview: Taper talk and impact on dollar

The outcome of Wednesday’s Federal Reserve monetary policy announcement could set the stage for how the U.S. dollar and currencies trade over the next month. With that in mind, the greenback maintained its bid ahead of rate decision.

Read more

Forex MAJORS

Cryptocurrencies

Signatures