GBP/USD flirting with lows as health-care vote looms

The GBP/USD pair remained under some selling pressure through early NY trading session and dropped to fresh session low near 1.2470-80 band. 

A mild US Dollar recovery, despite of mixed durable goods orders and disappointing Markit manufacturing PMI, coupled with the offered tone surrounding the British Pound collaborated to the pair's down-tick in the past couple of hours. 

The pair has now reversed upbeat UK retail sales data led gains recorded in the previous session, but despite of corrective slide still remains on track for second consecutive week of strong gains. 

Market seems to have largely ignored dovish comments from St.Louis Fed President Bullard noting that labor market improvements have been slowing and a relatively low policy rate would remain appropriate. Bullard further pointed towards possibilities of only one more Fed rate-hike action in 2017, but did little to assist the pair to recover. 

   • No need for aggressive rate hikes to keep inflation in check - Fed's Bullard

Investors remained cautious ahead of today's House vote on the Trump-backed GOP plan, which would not only replace the so-called Obamacare but would also provide clarity on Trump's ability to deliver on his promises of tax cuts and infrastructure spending. 

   • U.S. HoR aims to hold procedural vote by 11:15 am et (15:15 gmt) - RTRS

Technical levels to watch

A follow through retracement below 1.2475-70 level could get extended towards 100-day SMA support near 1.2420-10 region, below which the pair is likely to extend the corrective slide towards 1.2360-55 support before eventually dropping to test 1.2300-1.2290 horizontal level.

On the upside, the 1.25 mark now becomes immediate resistance and momentum above the said handle might continue to confront strong hurdle near 1.2525-30 region. However, a decisive strength above 1.2525-30 resistance should accelerate the up-move beyond 1.2560 intermediate resistance and the 1.2600 handle towards the next important barrier near mid-1.2600s.

1 Week
Avg Forecast 1.2408
  • 37% Bullish
  • 36% Bearish
  • 27% Sideways
Bias Bullish
1 Month
Avg Forecast 1.2227
  • 20% Bullish
  • 75% Bearish
  • 5% Sideways
Bias Bearish
1 Quarter
Avg Forecast 1.2116
  • 9% Bullish
  • 64% Bearish
  • 27% Sideways
Bias Bearish


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 pierces 1.1655 resistance as firmer sentiment weighs on USD

EUR/USD is holding higher ground above 1.1650 ahead of the German IFO survey. Weaker US Treasury yields, risk reset weigh on US dollar. ECB, US GDP in focus but China headlines, Fed tapering concerns will lead the sentiment.


GBP/USD jumps towards 1.3800 amid Brexit hopes, weaker dollar

GBP/USD is advancing towards 1.3800, snapping a two-day downtrend as the US dollar loses ground amid an improving risk tone. UK's Frost hints at compromise on Northern Ireland’s post-Brexit trade rules. BOE-speak, China news in focus. 


Gold hovers around $1,800 amid softer USD

Gold trades with gains on Monday, extending the previous week’s upside momentum. The yellow metal posts the gains for the fifth straight session. The US benchmark 10-year Treasury yields trade below 1.65%, with 0.78% losses, enhancing non-yielding bullion’s appeal.

Gold News

SafeMoon price presents a buy opportunity before 35% gains

SafeMoon price coils up under a crucial resistance level at $0.00000239. A sudden burst in buying pressure that shatters this barrier can kick-start a 35% ascent. In some cases, SAFEMOON could pull back to $0.00000198 or $0.00000175 support floors.

Read more

Wall Street Week Ahead: Huge week of earnings ahead AAPL, MSFT, GOOGL, AMZN, FB

Equity markets remain elevated with more all-time highs on Thursday for the broader S&P 500 while the Dow registered new highs on Wednesday and Thursday. So far late into Friday's session, the markets are seeing some profit-taking to end a solid week.

Read more