GBP/USD deflates from tops, back around 1.3060

Cable comes down after testing highs near 1.3140 earlier in the day.
UK Mortgage Approvals dropped to 38.8K in December.
No fresh relevant news on Brexit ahead of January 29 vote.

Pablo Piovano FXStreet

The now softer tone around the Sterling is weighing on GBP/USD, dragging it to the 1.3065/60 band, closer to daily lows.

GBP/USD upside capped near 1.3140

After hitting new 2019 highs around 1.3140 during early trade, Cable has come under a moderate selling pressure and is now clinging to daily gains in the proximity of 1.3060.

No news around Brexit today seems to be bad news for the British Pound, as market participants remain focused on any developments around PM Theresa May’s ‘Plan B’ and potential amendments, all to be voted by the Parliament on January 29.

In the UK data space, Mortgage Approvals ticked lower to 38.8K during December (from November’s 39.4K), a tad below estimates.

On the USD calendar, albeit unlikely to move the dial around Cable, Durable Goods Orders and New Home Sales are due later in the day.

GBP/USD levels to consider

As of writing, the pair is up 0.08% at 1.3073 facing the next resistance at 1.3138 (2019 high Jan.24) seconded by 1.3174 (monthly high Nov.7 2018) and then 1.3257 (monthly high Oct.12 2018). On the other hand, a breach of 1.3000 (high Jan.17) would open the door to 1.2950 (10-day SMA) and finally 1.2897 (100-day SMA).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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