- GBP/USD stalled its recent sharp pullback from 19-month tops.
- Upbeat UK economic data provided a minor lift to the pound.
- Bulls seemed reluctant amid renewed fears of a no-deal Brexit.
The GBP/USD pair traded with a mild positive bias and held comfortably above the key 1.30 psychological mark through the mid-European session on Friday, albeit lacked any strong follow-through.
The pair showed some resilience below the mentioned handle and gained some positive traction on the last trading day of the week. The early uptick lacked any obvious fundamental catalyst and was solely led by some short-covering, especially after the recent sharp fall of over 500 pips from 19-month tops, touched in reaction to a landslide victory for the Conservative Party at the most important UK general elections.
Bulls preferred to stay on the sidelines
The British pound found some additional support from Friday's mostly upbeat UK macro data, showing that the economic growth during the third quarter of 2019 stood at 0.4% as compared to 0.3% estimated earlier. Adding to this, the UK current account deficit fell sharply to £15.9 billion during the July-September quarter from £24.2 billion deficit (revised lower from £25.2 billion reported earlier) recorded in the previous quarter
However, some renewed fears of a no-deal Brexit held investors from placing any aggressive bullish bets. This coupled with a goodish pickup in the US dollar demand, supported by an intraday upsurge in the US Treasury bond yields, further collaborated towards capping any strong gains for the major.
Investors further preferred to stay on the sidelines ahead of a vote on the UK Prime Minister Boris Johnson's revised Brexit bill. The result of the voting is expected to be out by around 15:00 GMT on Friday, which should play a key role in driving the sentiment surrounding the sterling.
In the meantime, the US economic docket, highlighting the release of the final version of the Q3 GDP growth figures might influence the USD price dynamics and further contribute towards producing some meaningful trading opportunities during the early North-American session.
Technical levels to watch
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.
Recommended content
Editors’ Picks
EUR/USD rebounds to 1.0650 on renewed USD weakness
EUR/USD gained traction and rose to the 1.0650 area in the early American session on Tuesday. Disappointing housing data from the US seem to be weighing on the US Dollar, helping the pair stretch higher.
GBP/USD climbs above 1.2450 after US data
GBP/USD extended its recovery from the multi-month low it touched near 1.2400 and turned positive on the day above 1.2450. The modest selling pressure surrounding the US Dollar after dismal housing data supports the pair's rebound.
Gold retreats to $2,370 as US yields push higher
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
XRP struggles below $0.50 resistance as SEC vs. Ripple lawsuit likely to enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
US outperformance continues
The economic divergence between the US and the rest of the world has become increasingly pronounced. The latest US inflation prints highlight that underlying inflation pressures seemingly remain stickier than in most other parts of the world supported by a strong US labour market.