GBP/USD fails to hold daily gains, eases below 1.30 mark to turn flat on day

Eren Sengezer FXStreet

The GBP/USD pair, which touched its daily peak at 1.3020 during the European session, lost its traction to ease below the 1.30 handle in the NA session. As of writing, the pair is trading at 1.2970, a few pips below yesterday's closing level.

Although the US Dollar Index plummeted to its lowest level in 13 months below the 94 mark, the pair failed to take advantage of that situation. Investors don't see the cable as a good investment alternative against the greenback amid the uncertainty surrounding the outcome of Brexit negotiations. A recent poll conducted by Reuters showed that participants saw a 30% chance of Brexit talks ending with no deal and agreed that Brexit cancellation would be the best outcome from talks for the UK economy.

US Dollar extends losses, hits new 13-month low below 94

Furthermore, weaker-than-expected macro data from the U.K. this week hurt the expectations of a hawkish BoE move, weighing on the cable. Despite the heavy USD sell-off witnessed throughout the week, the GBP/USD pair is marching towards a weekly close with a loss around 150 pips.

Technical outlook

A weekly close below the 1.30 mark could open the door for further losses in the near-term. 1.2930 (Fib. 23.6% retracement of 21 - 30 June rise) could be seen as the first target ahead of 1.2865 (50-DMA) and 1.2800 (100-DMA). On the upside, resistances are located at 1.3000 (psychological level), 1.3050 (Jul. 19 high) and 1.3125 (Jul. 18 high).

Brexit headlines

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD holds losses below 1.1650 on renewed USD uptick

EUR/USD is off the low but remains in the red below 1.1650 in European trading on Thursday. The pair faces headwinds from a renewed uptick in the US Dollar amid a negative shift in risk sentiment. Surging energy prices due to the Middle East war keep the bearish pressure intact on the Euro. The US Jobless Claims data are next of note.

GBP/USD underperforms as UK faces stagflation risks amid Middle East war

The Pound Sterling trades lower against its major currency peers, is down 0.22% around 1.3340 against the US Dollar, during the Asian trade on Thursday. The British currency faces selling pressures amid fears that the United Kingdom economy could face stagflation risks due to higher energy prices, a situation in which inflation accelerates with economic growth and employment conditions remaining stagnant.

Gold climbs near $5,200 as Iran war fuels safe-haven demand

Gold price extends its gains for the second successive session on Thursday as traders seek safety amid the ongoing war in the Middle East. US and Israeli strikes across Iranian territory and widespread Iranian missile and drone retaliation across the Middle East, including attacks on regional targets and military sites, prolong the crisis and its impact.

Top Crypto Gainers: Decred, Zcash, and Dogecoin lead recovery as Bitcoin crosses $72,000

Bitcoin trades above $72,500 at press time on Thursday, holding its 6% gain from the previous day, contributing to a broader market recovery. The total cryptocurrency market capitalization stands at over $2.43 trillion as the broader market sentiment improves significantly.

First Venezuela, now Iran: The US-China energy war escalates

At first glance, the latest escalation involving the United States with both Iran and Venezuela looks like another chapter in a long-running geopolitical story. But viewed through a broader strategic lens, something else may be unfolding: Energy.

Cardano Price Analysis: Approaches key trendline amid bearish sentiment

Cardano (ADA) price is approaching its descending trendline around $0.28 at the time of writing, set to shape the next directional move. The derivatives metrics paint a bearish picture, with ADA’s Open Interest continuing to fall and short bets rising among traders.