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


Today last price 1.337
Today Daily Change 0.0014
Today Daily Change % 0.10
Today daily open 1.3356
Daily SMA20 1.3191
Daily SMA50 1.3034
Daily SMA100 1.3014
Daily SMA200 1.2727
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



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