GBP/USD: Focus on Irish border deal and UK IP ahead of US payrolls

  • DXY extends the upside.
  • Some ray of hope on the Irish border issue.
  • The US payrolls data holds the key.

The GBP/USD pair extended its overnight side trend into Asia, as the bulls consolidate yesterday’s solid rebound awaiting the outcome on the Irish border issue, as the UK PM May heads to Brussels to finalize Irish border deal. 

GBP/USD: Risk-on underpins

 The spot holds well above the midpoint of 1.34 handle and looks poised to regain 1.35 handle, as the bulls cheer a great amount of progress been made on the Irish border deal, with an Irish official citing that Ireland and Britain were 'very close' and seemingly a matter of hours away from a Brexit deal.

EU's Oettinger: Progress noticeable on Brexit divorce bill

Moreover, persisting risk-on trades, reflected by a rally in the Asian equities also keeps the sentiment buoyed around the risk currency GBP. However, over the last hours, the major remains confined in a tight trading range, as broad-based US dollar strength on the back of reports that the US House approves the Federal funds to avert a government shutdown.

Ahead of the UK PM May’s meeting with the EU’s Juncker and Tusk on the Irish border deal, the focus will remain on the UK industrial and manufacturing production data for fresh impetus. Also, the US payrolls data will be closely eyed for fresh direction on the buck ahead of next week’s FOMC meeting.

GBP/USD Technical Levels

According to Valeria Bednarik, Chief Analyst at FXStreet: “The pair is currently trading around the 23.6%% retracement of the latest bullish run, after piercing late Thursday the 61.8% retracement of the same rally at 1.3345. In the 4 hours chart, the price is above a bullish 20 SMA, while technical indicators corrected from near oversold territory, regaining now the upward strength. Support levels: 1.3445 1.3390 1.3345. Resistance levels: 1.3485 1.3520 13550.

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 securities. 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 Forex 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.