GBP/USD fails to hold onto recovery gains ahead of UK Services PMI


  • GBP/USD again comes under pressure amid fresh news from Britain, broad US dollar strength.
  • The UK PM’s policies on the jurisdiction, the environment gets criticism, odds for tough EU-UK talks increase.
  • Updates from China, Brexit headlines could also join economic signals to offer an active day.

GBP/USD pulls back to 1.3025 while heading into the London open on Wednesday. The Cable fails to extend the previous day’s recovery amid fresh accusations on the UK PM Boris Johnson’s crackdown on jurisdiction concerning terrorists and environment protection.

The Tory leader announced to repeal the law that allowed terrorists to be freed from jail after completing half the term. However, the opposition Labour Party lawmakers raised doubts over the Tories’ ability to pass any such regulations. Also weighing on the sentiment could be the widespread criticism of the UK PM Johnson’s environment policies that postpone performance on a net-zero emissions economy.

On the other hand, the greenback remains on the front foot following upbeat data flashed the previous day. It should also be noted that cautious optimism, amid fears of coronavirus, keeps the USD as market’s favorite.

The pair registered gains the previous day as the absence of further negatives on the EU-UK trade talks as well as better than forecast UK Construction PMI played their role.

Traders will now keep eyes on the final readings of the UK Services PMI for January. The Key activity gauge is likely to remain unchanged at 52.9. However, any surprise upside could reverse the early-day losses as it will then join the recent positive data from Britain.

The US economic calendar also has some key data concerning employment, activity and trade that are likely to justify the greenback’s strength. In this regard, analysts at TD Securities said, “We forecast the ISM non-manufacturing index to rise modestly to 55.3 in Jan following an already-strong 54.9 print in Dec, as the Phase One deal should give a marginal boost to sentiment. Separately, we anticipate a strong surge in ADP employment for Jan at 230k, up from 202k, and expect the trade deficit to have widened to USD 48.8bn in Dec.”

Technical Analysis

While a six-week-old rising trend line, at 1.2985 now, restricts the pair’s immediate declines, 21-day SMA at 1.3060, guards the quote’s immediate upside.

Additional important levels

Overview
Today last price 1.3023
Today Daily Change -11 pips
Today Daily Change % -0.08%
Today daily open 1.3034
 
Trends
Daily SMA20 1.3058
Daily SMA50 1.3078
Daily SMA100 1.2885
Daily SMA200 1.2696
 
Levels
Previous Daily High 1.3047
Previous Daily Low 1.2941
Previous Weekly High 1.3207
Previous Weekly Low 1.2974
Previous Monthly High 1.3281
Previous Monthly Low 1.2954
Daily Fibonacci 38.2% 1.3007
Daily Fibonacci 61.8% 1.2981
Daily Pivot Point S1 1.2968
Daily Pivot Point S2 1.2901
Daily Pivot Point S3 1.2862
Daily Pivot Point R1 1.3074
Daily Pivot Point R2 1.3113
Daily Pivot Point R3 1.318

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD clings to recovery gains above 1.1350 after EU inflation data

EUR/USD gained traction and climbed to its highest level in more than 10 days above 1.1360 amid the broad-based selling pressure surrounding the greenback. The data from the euro area showed that the annual CPI jumped to 4.9% in November from 4.1% in October, helping the shared currency preserve its strength.

EUR/USD News

GBP/USD advances to mid-1.3300s on renewed dollar weakness

GBP/USD gathered bullish momentum during the European trading hours and climbed to 1.3350 area as the greenback remains under selling pressure amid slumping US Treasury bond yields. Investors await FOMC Chairman Powell's testimony.

GBP/USD News

Gold eyes $1,800 and $1,806 on road to recovery

The precious metal has staged a decent comeback, as bulls look to recapture the $1,800 mark amid a revival of the Omicron covid variant fears. A flight to safety theme remains in vogue killing the demand for the yields.

Gold News

XRP price on edge of cliff as Ripple faces imminent collapse

XRP price followed the rest of the cryptocurrency market lower over the weekend. The US Thanksgiving holiday gave cryptocurrency traders and investors some early Black Friday deals, but downside risks remain.

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures