GBP/USD consolidates overnight strong gains to 2-week tops, just below mid-1.2400s

  • Renewed Brexit optimism led to the pair's intraday rally of over 250 pips on Thursday.
  • The prevalent USD selling bias, amid Fed rate cut expectations, remained supportive.
  • Investors' focus on Friday will remain on the resumption of the EU-UK Brexit talks.

The GBP/USD pair was seen oscillating in a narrow trading band through the Asian session on Friday and consolidated the overnight upsurge to over two-week tops.
Having shown resilience below the 1.2200 round-figure mark, the pair on Thursday caught some aggressive bids and posted its largest daily percentage gains since March amid renewed Brexit optimism. The British Pound turned out to be the best-performing major currency after Irish Prime Minister Leo Varadkar said that a Brexit deal could be clinched by the end of October.

Sterling rallies on Brexit hopes

Following a three hour meeting with the UK PM Boris Johnson, Varadkar said that they have identified a potential path forward on the Irish border issue and how to avoid a hard border. The Irish border had caused a major impasse between Brexit negotiators and largely prevented the UK and EU from agreeing on a Brexit Withdrawal Agreement. The latest remarks, however, suggested that they might finally be able to find common ground and get Brexit talks back on track.
The pair rallied over 250 pips, taking along some short-term trading stops being placed near the 1.2300 handle and the 1.2345-50 supply zone, and was further supported by the prevalent US Dollar selling bias. Despite the incoming positive trade-related headlines and a strong pickup in the US Treasury bond yields, the Greenback failed to gain any respite and remained depressed in the wake of increasing odds of another interest rate cut by the Fed at its upcoming meeting on October 29-30.
Thursday’s softer US CPI figures further fueled market speculations and exerted some additional downward pressure on the buck. In fact, the headline US consumer price index (CPI) remained unchanged in September – the weakest reading in eight months – and held steady at 1.7% on an annual basis. Meanwhile, the core CPI rose by just 0.1% from the prior month, leaving room for a further monetary policy easing by the Fed.
The pair now seems to have entered a bullish consolidation phase and was seen oscillating in a narrow trading band, just below mid-1.2400s through the Asian session on Friday. Moving ahead, Friday's key focus will remain on the resumption of EU-UK Brexit talks and the incoming headlines might continue to act as an exclusive driver of the broader market sentiment surrounding the Sterling amid absent relevant market moving economic releases from the US.

Technical levels to watch


Today last price 1.2438
Today Daily Change -0.0006
Today Daily Change % -0.05
Today daily open 1.2444
Daily SMA20 1.2375
Daily SMA50 1.2262
Daily SMA100 1.2413
Daily SMA200 1.2715
Previous Daily High 1.247
Previous Daily Low 1.2204
Previous Weekly High 1.2414
Previous Weekly Low 1.2205
Previous Monthly High 1.2583
Previous Monthly Low 1.1958
Daily Fibonacci 38.2% 1.2368
Daily Fibonacci 61.8% 1.2305
Daily Pivot Point S1 1.2275
Daily Pivot Point S2 1.2107
Daily Pivot Point S3 1.201
Daily Pivot Point R1 1.2541
Daily Pivot Point R2 1.2638
Daily Pivot Point R3 1.2806



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

Editors’ Picks

EUR/USD rebounds after dismal US PMIs

EUR/USD is trading closer to 1.0850, rising in response to weak US PMIs, with the services one pointing to contraction. Earlier, German Manufacturing PMI beat estimates. 


GBP/USD advances to 1.2950 after US data

GBP/USD is trading around 1.2950, taking advantage of US weakness stemming from a downfall in Markit's Services PMI in the US. In Britain, the Manufacturing PMI exceeded estimates. 


Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Consolidation process underway

The Crypto board continues to be immersed in an emotional leg-breaking, consistently punishing the emotional state of the traders with its continuous changes of direction.

Read more

XAU/USD unstoppable, breaks to fresh 2020 highs, approaching $1650/oz

XAU/USD is trading in an uptrend above its main daily simple moving averages (SMAs) while breaking above a bull channel. Gold is printing fresh 2020 highs hitting $1646.64 per ounce on an intraday basis.  

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info