GBP/USD consolidates losses above 1.3900 on Brexit relief, UK Retail Sales eyed

  • GBP/USD bounces off six-week low to snap three-day downtrend.
  • UK formally requests three months to overcome sales of sausages in Northern Ireland, unlock can be two week early.
  • UK Chancellor Sunak rejects extra fiscal helps on delayed unlock.
  • British Retail Sales for May, risk headlines become the key amid a light calendar elsewhere.

GBP/USD snaps three-day downtrend to early May lows while staying firmer around 1.3935 amid the initial Asian session trading on Friday. In doing so, the cable pair cheers mildly bid S&P 500 Futures as well as positive news concerning Brexit and the UK’s covid-led unlock.

With the UK’s hospitalization still below January’s record peak, odds of a two-week early unlock of Britain, as proposed by PM Boris Johnson can’t be ruled out. UK’s Daily Mail mentioned anonymous sources to say, “Lockdown could end two weeks early if Covid data continues to improve.”

Also positive for the GBP/USD prices could be the UK’s formal request of a three-month leeway to solve the sausage battle with the European Union (EU) in Northern Ireland (NI). The Guardian cites Britain’s readiness to guarantee the EU citizen voting right in local elections as the driver behind the request. The news said, “The Brexit minister, Lord Frost, has written to the EU with an official request to extend the grace period to 30 September for the sale of sausages produced in Great Britain in Northern Ireland supermarkets.”

It’s worth noting that the strong print of the UK’s Consumer Price Index (CPI) data has already strengthened odds of the Bank of England’s (BOE) tapering and hence today’s Retail Sales for May, expected to ease from 42.4% YoY to 29%, will be the key.

Elsewhere, global markets consolidate the Fed-led losses during a sluggish Asian session comprising no major catalysts. The reason could be traced to increasing odds of US President Joe Biden’s infrastructure spending. Even so, chatters over the threat on Chinese companies from Biden’s executive order probe the market bulls during a quiet day.

Hence, S&P 500 Futures snap a two-day south-run whereas the US Treasury yields also stabilize by the press time.

Looking forward, the UK’s Retail Sales will be the key event amid a light calendar elsewhere. However, chatters relating to the unlock, covid and Brexit will also be crucial for GBP/USD pair.

Technical analysis

A clear break of 1.3965 support confluence comprising ascending trend lines from December and June 2020, favors GBP/USD bears even as the quote defends the 1.3900 threshold. It should also be noted that 100-day SMA near 1.3940 guards the corrective pullback. Meanwhile, a downside break of 1.3900 will aim for April-end lows near the 1.3800 round figure.

Additional important levels

Today last price 1.3935
Today Daily Change -54 pips
Today Daily Change % -0.39%
Today daily open 1.3989
Daily SMA20 1.4144
Daily SMA50 1.4015
Daily SMA100 1.3935
Daily SMA200 1.3587
Previous Daily High 1.4133
Previous Daily Low 1.3983
Previous Weekly High 1.4191
Previous Weekly Low 1.4073
Previous Monthly High 1.4234
Previous Monthly Low 1.3801
Daily Fibonacci 38.2% 1.404
Daily Fibonacci 61.8% 1.4075
Daily Pivot Point S1 1.3937
Daily Pivot Point S2 1.3885
Daily Pivot Point S3 1.3787
Daily Pivot Point R1 1.4087
Daily Pivot Point R2 1.4185
Daily Pivot Point R3 1.4237



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 recoups 1.1800 mark amid USD weakness

EUR/USD prints minor gains on Tuesday’s morning Asian session. The pair opened higher and moved in a narrow trade band with 15 pips movement. The Euro continues to trade in a range bound manner for the past two weeks.


GBP/USD edges higher past 1.3800 as covid optimism battles Brexit woes

GBP/USD seesaws around 1.3820, following the heaviest daily run-up in a week, amid Tuesday’s Asian session. The cable pair benefited from the latest reduction in the coronavirus numbers at home, as well as the broad softening of the US dollar, the previous day.


EUR/USD recoups 1.1800 mark amid USD weakness

EUR/USD prints minor gains on Tuesday’s morning Asian session. The pair opened higher and moved in a narrow trade band with 15 pips movement. The Euro continues to trade in a range bound manner for the past two weeks.


SafeMoon price nears lift-off, as SAFEMOON possesses the conditions for a big move

Safemoon price has been coiling within a descending triangle pattern since the May crash, highlighted by no sustainable rallies and continuous support along the May 19 low of $0.00000261. The downward trajectory has kept SAFEMOON investors on the defensive.

Read more

FX: 10 things to watch this week

Taking a look at the economic calendar, it is set to be a busy week for the forex market. There’s a central bank rate decision, GDP, inflation and employment reports scheduled for release. A number of big tech companies have ...

Read more