GBP/USD's reversal from 1.1300 finds support at 1.1200

The pound remains steady above1.1220.
Weak UK data and political uncertainty are weighing on the GBP.
GBP/USD, approaching the tip of a triangle pattern.

Guillermo Alcala FXStreet

The pound failed on its assault to 1.1300 earlier on Friday, although the ensuing reversal has found support at 1.1220 and the pair picked up again to the 1.1250 area. The GBP/USD remains moderately positive on the day in track to regain the previous two day’s losses.

UK's weak economic prospects are hurting the pound

Retail consumption contracted by 1.4% in September, well above market expectations of a 0.5% decline, and was 6.9% lower from the same month last year, according to data reported by National Statistics released earlier on Friday.

The impact of these figures, which have confirmed fears of an upcoming recession in the UK and have been coupled with political uncertainty, as the Tory party hustles to find a replacement for Liz Truss, which has increased negative pressure on the pair.

GBP/USD approaching the tip of a triangle formation

From a technical point of view, the daily chart shows the pair approaching the tip of a symmetrical triangle pattern with trendline resistance at 1.1325, and the next potential resistance levels at 1.1430 (50-day SMA) ahead of October 4 and 5 highs at 1.1510.

On the downside, the base of the triangle lies now at 1.1080. Below here, bears might increase confidence and send the pair to 1.0920 (October 12 low) and then probably to 1.0540 (September 28 low)

GBP/USD daily chart

Technical levels to watch

AUD/USD

Overview
Today last price	0.6358
Today Daily Change	0.0077
Today Daily Change %	1.23
Today daily open	0.6281

Trends
Daily SMA20	0.6381
Daily SMA50	0.6654
Daily SMA100	0.6798
Daily SMA200	0.7014

Levels
Previous Daily High	0.6356
Previous Daily Low	0.6228
Previous Weekly High	0.638
Previous Weekly Low	0.617
Previous Monthly High	0.6916
Previous Monthly Low	0.6363
Daily Fibonacci 38.2%	0.6307
Daily Fibonacci 61.8%	0.6277
Daily Pivot Point S1	0.6221
Daily Pivot Point S2	0.6161
Daily Pivot Point S3	0.6093
Daily Pivot Point R1	0.6349
Daily Pivot Point R2	0.6416
Daily Pivot Point R3	0.6476

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

GBP/USD slides below 1.3250 after failing to break through 23.6% Fibo

The GBP/USD pair meets with a fresh supply during the Asian session on Wednesday and moves away from a nearly two-week high around the 1.3275 region, touched the previous day. Spot prices currently trade around the 1.3235 zone, down 0.20% for the day, as traders look to speeches from Bank of England Governor Andrew Bailey and Federal Reserve Chair Kevin Warsh for a fresh impetus.

EUR/USD tests daily lows near 1.1380; focus on ECB Forum

EUR/USD remains under pressure below 1.1400 on Wednesday amid extra gains in the US Dollar. In addition, softer-than-expected inflation data in Germany and the Euroland fuel expectations of a less aggressive ECB, contributing to the downside mood.

Gold clings to daily gains beyond $4,000 ahead of Warsh

Gold manages to regain composure and advance past the key $4,000 per troy ounce on Wednesday, reversing two daily drops in a row. The yellow metal’s decent bounce comes despite uncertainty surrounding Iran and growing expectations of a Fed rate hike continue to support the Greenback for now.

ISM Manufacturing PMI expected to signal continued expansion in the US

Attention shifts to Wednesday’s release of the June ISM Manufacturing Purchasing Managers Index, one of the most closely followed indicators of activity in the US manufacturing sector and an important barometer of the broader economy. Markets expect the headline index to remain unchanged at 54.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The European Central Bank Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Federal Reserve, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.