GBP/USD flat lined below 1.2900 handle ahead of US retail sales


  • UK political uncertainty held investors from placing any aggressive bets.
  • A subdued USD demand helped limit the downside ahead of the US data.

The GBP/USD pair lacked any firm directional bias on Friday and oscillated in a narrow trading range, below the 1.2900 handle through the mid-European session.
 
The pair failed to capitalize on the previous session's late pickup and remained capped below the top end of its weekly trading range as investors still seemed reluctant to place any aggressive bets amid uncertainty over the outcome of the UK snap election on December 12.

Traders remained on the sidelines

It is worth reporting that the incoming polls have indicated a majority for the ruling Conservative party. The odds increased further on reports that Brexit party leader Nigel Farage could back down on closely contested Labour-held seats to give Boris Johnson more of a winning chance in the election.
 
Bulls, however, seemed unimpressed, rather preferred to wait on the sideline and wait for a fresh catalyst before positioning for the next leg of a directional move. Meanwhile, the downside remained cushioned on the back of a subdued US Dollar demand.
 
Despite the incoming positive trade-related headlines, which raised hopes of a US-China trade deal, and a strong intraday pickup in the US Treasury bond yields, the greenback failed to gain any meaningful traction ahead of Friday's release of the US monthly retail sales figures.
 
Apart from the key consumer spending data, some second-tier US economic releases – Empire State Manufacturing Index, Industrial Production and Capacity Utilization Rate – might further influence the USD price dynamics and contributed towards producing some short-term trading opportunities.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2879
Today Daily Change 0.0000
Today Daily Change % -0.00
Today daily open 1.2879
 
Trends
Daily SMA20 1.2878
Daily SMA50 1.2609
Daily SMA100 1.2459
Daily SMA200 1.2703
 
Levels
Previous Daily High 1.2889
Previous Daily Low 1.2824
Previous Weekly High 1.2943
Previous Weekly Low 1.2769
Previous Monthly High 1.3013
Previous Monthly Low 1.2194
Daily Fibonacci 38.2% 1.2864
Daily Fibonacci 61.8% 1.2849
Daily Pivot Point S1 1.2839
Daily Pivot Point S2 1.2799
Daily Pivot Point S3 1.2774
Daily Pivot Point R1 1.2904
Daily Pivot Point R2 1.2929
Daily Pivot Point R3 1.2969

 

 

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