GBP/USD clings to modest gains near 1.3370 area, lacks follow-through


  • GBP/USD managed to regain some positive traction on the last trading day of the week.
  • The modest intraday uptick seemed rather unaffected by the incoming Brexit headlines.
  • COVID-19 vaccine optimism undermined the safe-haven USD and remained supportive.

The GBP/USD pair held on to its modest intraday gains through the early European session and was seen hovering near the top end of its daily range, around the 1.3370 region.

Following the previous day's good two-way price moves, the pair caught some fresh bids on the last day of the week and seemed rather unaffected by Brexit uncertainties. In the latest Brexit-related headlines, the EU's chief Brexit negotiator, Michel Barnier reportedly told envoys that he cannot say if a deal is possible at this stage.

It is worth reporting that both sides are yet to find a compromise on key sticking points – the so-called level playing field, fisheries and state-aid rules. Investors, however, remained optimistic about the possibility of a last-minute Brexit, which, in turn, underpinned the British pound and extended some support to the GBP/USD pair.

On the other hand, the US dollar remained depressed amid progress towards remedies for COVID-19 and hopes for more fiscal stimulus from the incoming Biden administration. This, along with sliding US Treasury bond yields, exerted some additional pressure on the greenback and remained supportive of the bid tone surrounding the GBP/USD pair.

That said, the recent range-bound price action witnessed over the past few trading sessions warrants some caution before traders start positioning for any big movement in either direction. Nevertheless, a sustained strength beyond the 1.3400 mark will be seen as a fresh trigger for bullish traders and pave the way for further near-term gains.

There isn't any major market-moving economic data due for release on Friday, either from the UK or the US. Hence, investors will keep a close watch on any incoming Brexit-related headlines. Apart from this, the broader market risk sentiment will influence the USD price dynamics and produce some short-term trading opportunities around the GBP/USD pair.

Technical levels to watch

GBP/USD

Overview
Today last price 1.337
Today Daily Change 0.0014
Today Daily Change % 0.10
Today daily open 1.3356
 
Trends
Daily SMA20 1.3191
Daily SMA50 1.3034
Daily SMA100 1.3014
Daily SMA200 1.2727
 
Levels
Previous Daily High 1.3398
Previous Daily Low 1.3322
Previous Weekly High 1.3312
Previous Weekly Low 1.3166
Previous Monthly High 1.3177
Previous Monthly Low 1.282
Daily Fibonacci 38.2% 1.3351
Daily Fibonacci 61.8% 1.3369
Daily Pivot Point S1 1.332
Daily Pivot Point S2 1.3283
Daily Pivot Point S3 1.3244
Daily Pivot Point R1 1.3396
Daily Pivot Point R2 1.3434
Daily Pivot Point R3 1.3471

 

 

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


Latest Forex News

Editors’ Picks

EUR/USD rises above 1.21 amid better market mood

EUR/USD has been extending its gains, recapturing 1.21 as the market mood improves. The German ZEW Economic Sentiment beat estimates with 61.8 points. Treasury Secretary nominee Janet Yellen's testimony is awaited.

EUR/USD News

GBP/USD clings to 1.36 ahead of Yellen's testimony

GBP/USD is edging above 1.36 as markets eagerly Treasury Secretary nominee Janet Yellen's testimony. The UK parliament is set to process the Brexit deal as Britain ramps up its vaccination campaign.

GBP/USD News

Gold recovers further from multi-week lows, climbs to $1845 region

Gold gained positive traction for the second consecutive session on Tuesday. A modest USD pullback was seen as a key factor that benefitted the metal. The risk-on mood, rallying US bond yields might cap gains for the commodity.

Gold news

Breaking: Ethereum explodes to new yearly high, validating upward price action

Ethereum has ascended to new yearly highs after breaking the recent peak achieved in January. The flagship altcoin is trading at $1,372 amid the push for gains eyeing $1,400. 

Read more

US Dollar Index looks side-lined near 90.70

The greenback, when tracked by the US Dollar Index (DXY), appears to have moved into a consolidative range around the 90.70 level following the closing bell in Asian markets.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures