GBP/USD flirting with lows, back closer to 1.30 handle


   •  Renewed Brexit concerns prompt some fresh selling at the start of a new week.
   •  A goodish pickup in the USD demand exerts some additional downward pressure.

The GBP/USD pair extended its intraday retracement slide from 100-day SMA and has now erased all of Friday's goodish rebound from two-week lows. 

The pair's early European session uptick quickly ran out of steam ahead of the 1.3100 handle, with a combination of negative factors prompting some fresh selling at the start of a new trading week. 

The UK PM Theresa May's proposal to extend the transition period as an alternative to a backstop met with some serious criticism by pro-Brexit members of her own party. 

A growing rebellion against May's Brexit plans fueled speculations over an immediate threat to her leadership and was seen as one of the key factors weighing heavily on the British Pound.

This coupled with a goodish pickup in the US Dollar demand exerted some additional downwards pressure and dragged the pair back closer to the key 1.30 psychological mark. 

In absence of any major market moving economic releases, the pair remains at the mercy of incoming Brexit-related news ahead of May's Brexit update in the Commons later today.

Technical levels to watch

A sustained break through the 1.30 handle might now be seen as a fresh bearish trigger and accelerate the downfall towards 1.2935 intermediate support en-route the 1.2900 round figure mark. 

On the upside, the 1.3065-70 region might now act as an immediate resistance, which if cleared might lift the pair beyond 100-day SMA hurdle, near the 1.3090 region, towards testing the 1.3145-50 supply zone.
 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD sticks to daily gains above 1.1100

The EUR/USD pair consolidates intraday gains, despite not so encouraging Brexit headlines after all. Mixed US data keeps the greenback under pressure, as well as equities trading in the green.

EUR/USD News

GBP/USD comfortable above 1.2800, focus shifts to Parliament

The EU27 approved the latest withdrawal agreement and the political declaration, as expected. Broad dollar’s weakness underpins the pair ahead of Parliament's extraordinary session next Saturday.

GBP/USD News

USD/JPY: stuck in a range above mid-108.00s pivotal point

The USD/JPY pair climbed higher toward the 109 handle during the European Trading hours as the announcement of the Brexit deal made allowed risk-on flows to dominate the markets. 

USD/JPY News

Gold lacks any firm direction, stuck in a range around $1490 area

Gold lacked any firm directional bias and seesawed between tepid gains/minor losses, around the $1490 region through the early European session on Thursday.

Gold News

As soon as the China deal falls apart the dollar will rise again

Where does the dollar go from here? We might wonder if an okay US economy still fades a bit in the face of a recovering European and perhaps UK economy. We guess the dollar is not getting a comeuppance right now, just a correction.

Read more

Forex MAJORS

Cryptocurrencies

Signatures