The Sterling has started the weak on a soft note, now dragging GBP/USD to test lows in the 1.2150 area.
GBP/USD focus on ‘Brexit’ headlines, US data
The pair has come under renewed selling pressure since Friday, prolonging the drop to the mid-1.2100s where it seems to have found some support for the time being.
Last week’s up tick to levels above the 1.23 handle following PM T.May’s comments have relieved markets of the likeliness of a ‘hard Brexit’ scenario, although the bullish attempt lacked of sustainability.
Regarding positioning and according to the latest CFTC report, GBP speculative net shorts have been trimmed a tad during the week ended on October 11, although they still remain in record levels.
Later in the session, MPC B.Broadbent is due to speak before the Work and Pension Select Committee on the ‘Pension Protection Fund and Pensions Regulator’.
Across the pond, the NY Empire State manufacturing index is due ahead of September’s Industrial Production and Capacity Utilization. Furthermore, FOMC’s VP S.Fischer is due to speak on ‘Low Interests Rates’ at the Economic Club of New York Luncheon.
GBP/USD levels to consider
As of writing the pair is losing 0.21% at 1.2161 and a break below 1.2086 (low Oct.11) would expose 1.1450 (low post-‘flash crash’ Oct.7). On the other hand, the next resistance aligns at 1.2377 (high Oct.11) followed by 1.2644 (20-day sma) and finally 1.2761 (high pre-‘flash crash’ Oct.7).
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.
Recommended content
Editors’ Picks
EUR/USD retreats to 1.0750, eyes on Fedspeak
EUR/USD stays under modest bearish pressure and trades at around 1.0750 on Wednesday. Hawkish comments from Fed officials help the US Dollar stay resilient and don't allow the pair to stage a rebound.
GBP/USD struggles to hold above 1.2500 ahead of Thursday's BoE event
GBP/USD stays on the back foot and trades in negative territory below 1.2500 after losing nearly 0.5% on Tuesday. The renewed US Dollar strength on hawkish Fed comments weighs on the pair as market focus shifts to the BoE's policy announcements on Thursday.
Gold fluctuates in narrow range above $2,300
Gold struggles to make a decisive move in either direction and moves sideways in a narrow channel above $2,300. The benchmark 10-year US Treasury bond yield clings to modest gains near 4.5% and limits XAU/USD's upside.
SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51
Ripple (XRP) dipped to $0.51 low on Wednesday, erasing its gains from earlier this week. The Securities and Exchange Commission (SEC) filing is now public, in its redacted version.
Softer growth, cooler inflation and rate cuts remain on the horizon
Economic growth in the US appears to be in solid shape. Although real GDP growth came in well below consensus expectations, the headline miss was mostly the result of larger-than-anticipated drags from trade and inventories.