GBP/USD heads back towards 4-month lows amid growing UK political risks


  • UK PM May’s leadership risks continue to hurt the Sterling.
  • US-China trade and Brexit concerns to drive sentiment amid lack of fresh UK macro news.

GBP/USD broke its consolidative phase seen in early Asia and resumed its recent bearish momentum as growing concerns over the UK PM May’s resignation are back in play heading towards the European trading.

The Cable remained under pressure after the UK PM May’s new Brexit deal proposal was met with disappointment by her Party’s lawmakers, as the new 10-point document offered nothing new and emphasized on the second referendum. Further, the resignation by the House of Common Leader and a Tory member Andrea Leadsom accentuated the worries over the UK political climate as PM May looks to step down by Friday, as cited by the UK Times.

Adding to the downbeat tone around the higher-yielding GBP, the US-China trade escalation continues to dent the risk sentiment, as reflected by negative Asian equities and Treasury yields. The latest reports that the US has urged the South Korean companies to reject Huawei’s products further fuels the ongoing rift between the US and China.

Looking ahead the risks remain to the downside in the spot, as the UK political uncertainties and trade-related development will continue to keep the markets on the edge. Meanwhile, the US dollar is likely to remain broadly bid, in light of the recent FOMC minutes and ahead of the US Markit PMIs and new homes sales releases. Also, in focus will be a slew of speech by the Fed officials. It’s worth noting that the UK docket remains data empty this Thursday.

GBP/USD Technical Levels

GBP/USD

Overview
Today last price 1.2647
Today Daily Change -0.0013
Today Daily Change % -0.10
Today daily open 1.2661
 
Trends
Daily SMA20 1.2927
Daily SMA50 1.3032
Daily SMA100 1.3017
Daily SMA200 1.2957
Levels
Previous Daily High 1.2721
Previous Daily Low 1.2624
Previous Weekly High 1.3042
Previous Weekly Low 1.2711
Previous Monthly High 1.3196
Previous Monthly Low 1.2865
Daily Fibonacci 38.2% 1.2661
Daily Fibonacci 61.8% 1.2684
Daily Pivot Point S1 1.2616
Daily Pivot Point S2 1.2572
Daily Pivot Point S3 1.2519
Daily Pivot Point R1 1.2713
Daily Pivot Point R2 1.2766
Daily Pivot Point R3 1.281

 

 

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's range play continues ahead of Eurozone Consumer Confidence

EUR/USD remains directionless despite the drop in the US treasury yields. An above-forecast Eurozone Consumer Confidence will likely push the pair higher to the trendline falling from June highs. 

EUR/USD News

GBP/USD sits at 2-month tops ahead of key Brexit talks

Fresh optimism surrounding the Brexit deal propels GBP/USD to a two-month high. Brexit talks between the EU's chief negotiator Michel Barnier and UK Brexit Secretary Stephen Barclay will be the key.

GBP/USD News

USD/JPY: Bears eyeing break below 107.45

USD/JPY trades modestly flat, with the bias leaning to the downside, as we wind down into the close for the week following a data-heavy number of sessions which have left more questions unanswered and the outlook murky. 

USD/JPY News

Gold holds on to recovery gains amid trade/political pessimism

In addition to bouncing off multi-month-old rising trend-line, Gold gains support form recently downbeat trade/political headlines while taking the bids to $1,500 during Friday’s Asian session.

Gold News

Markets unmoved by Fed cut and pause

The Federal Reserve’s latest twist in monetary policy, reducing the fed funds for a second time in two months and then pausing for instructions has left markets without a clear direction on interest rates. Equites ended mixed.

Read more

Forex MAJORS

Cryptocurrencies

Signatures