GBP/USD consolidates gains above 1.2900, Pound among top performers

Pound outperforms despite UK political headlines.
GBP/USD holds firm above 1.2900, 150 pips above last week lows.

Matías Salord FXStreet

The GBP/USD pair is consolidating gains and remains near the highs, holding above 1.2900. Earlier today, it climbed to 1.2937, the strongest level since last Wednesday.

During the last hours, it has been moving sideways, in a small range between 1.2910 and 1.2932. The pound is holding firm to daily gains and is the top performer among majors.

The move higher took place amid a slide of the US dollar across the board. Political development in the UK had no impact on the pound. Today, seven members of the Parliament quit from the Labour Party to form an independent group.

Regarding Brexit, the uncertainty still prevails. Comments from Minister David Lidington, saying that the UK government might be able to re-negotiate the deal with the EU or delay Brexit, favored the pound modestly.

Volatility is expected to continue subdued in the wake of the President's Day holiday in the US. The greenback is posting mix results on Monday.

Tomorrow in the UK, jobs data will be released. “We estimate the unemployment rate (three-month average) was unchanged at 4.0%, but it is probably a close call as to whether it fell to 3.9% or not. We estimate average weekly earnings ex bonuses (three-month average) were 3.3% y/y higher than in December 2017,” wrote analysts at Danske Bank. In the US, the next key even will be on Wednesday, with the release of the FOMC minutes.

Technical Levels

GBP/USD

Overview:
    Today Last Price: 1.2917
    Today Daily change: 0.0025 pips
    Today Daily change %: 0.19%
    Today Daily Open: 1.2892
Trends:
    Daily SMA20: 1.2992
    Daily SMA50: 1.2824
    Daily SMA100: 1.2878
    Daily SMA200: 1.3007
Levels:
    Previous Daily High: 1.2898
    Previous Daily Low: 1.2785
    Previous Weekly High: 1.2959
    Previous Weekly Low: 1.2773
    Previous Monthly High: 1.3214
    Previous Monthly Low: 1.2438
    Daily Fibonacci 38.2%: 1.2855
    Daily Fibonacci 61.8%: 1.2828
    Daily Pivot Point S1: 1.2818
    Daily Pivot Point S2: 1.2745
    Daily Pivot Point S3: 1.2705
    Daily Pivot Point R1: 1.2932
    Daily Pivot Point R2: 1.2972
    Daily Pivot Point R3: 1.3045

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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