GBP/USD holds steady below 1.2900 mark, moves little post-UK CPI


  • GBP/USD lacked any firm directional bias and seesawed between tepid gains/minor losses.
  • Mostly better-than-expected UK consumer inflation figures did little to impress the GBP bulls.
  • Investors seemed reluctant to place any aggressive bets ahead of the key central bank events.

The GBP/USD pair extended its sideways consolidative price action and had a rather muted reaction to the UK consumer inflation figures.

The pair continued with its struggle to find acceptance above the 1.2900 mark and witnessed a modest intraday pullback on Wednesday, albeit lacked any follow-through and remained well within the previous day's trading range. Growing market fears of a no-deal Brexit held the GBP bulls on the defensive and capped the GBP/USD pair's recent recovery move from seven-week lows.

On the economic data front, better-than-expected UK consumer inflation figures extended some support to the British pound and helped limit any deeper losses. In fact, the headline CPI fell 0.4% in August as against -0.6% expected and rose 0.2% on a yearly basis. Meanwhile, core CPI decelerated to 0.9% YoY rate from 1.8% previous and beat market expectations of 0.6%.

Investors, however, seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines ahead of this week's key central bank events. The Fed is scheduled to announce its policy decision later this Wednesday. This will be followed by the BoE monetary policy update on Thursday, which will help determine the GBP/USD pair's near-term trajectory.

In the meantime, market participants will look forward to the release of the US Monthly Retail Sales figures for some short-term trading impetus later during the early North American session.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2894
Today Daily Change 0.0005
Today Daily Change % 0.04
Today daily open 1.2889
 
Trends
Daily SMA20 1.3126
Daily SMA50 1.2979
Daily SMA100 1.2703
Daily SMA200 1.2734
 
Levels
Previous Daily High 1.2926
Previous Daily Low 1.2815
Previous Weekly High 1.3279
Previous Weekly Low 1.2763
Previous Monthly High 1.3396
Previous Monthly Low 1.2982
Daily Fibonacci 38.2% 1.2884
Daily Fibonacci 61.8% 1.2858
Daily Pivot Point S1 1.2827
Daily Pivot Point S2 1.2765
Daily Pivot Point S3 1.2716
Daily Pivot Point R1 1.2939
Daily Pivot Point R2 1.2988
Daily Pivot Point R3 1.305

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds gains above 1.1850 amid tepid market mood

EUR/USD is trading above 1.1850, holding onto recent gains The uptrend, however, at risk as coronavirus cases rise across the Eurozone. New lockdown restrictions may force the ECB to adopt a stronger dovish stance. Focus shifts to Powell's speech, EZ Preliminary PMIs. 

EUR/USD News

GBP/USD hovers around 1.2950 amid likely virus curbs

GBP/USD stays well bid near  mid-1.2900s following three successive failures to cross 1.3000 during last week. UK’s health authorities mull lockdown restrictions. Chancellor Sunak may extend business support loans. Fedspeak eyed amid a light calendar. 

GBP/USD News

Gold due for a breakout, according to key indicator

Gold's multi-week consolidation in a narrowing price range could end with a bullish breakout, as a widely-tracked daily chart indicator is about to turn bullish. The yellow metal has carved out a descending triangle pattern over the past four weeks.

Gold News

Forex Today: US dollar sags amid fiscal overhang, mounting coronavirus risks

The US dollar remained on the defensive starting out a fresh week this Monday, extending last week’s softness, courtesy of the gridlock on the US fiscal stimulus.

Read more

WTI buyers attack $41.00 amid US-Iran tension, escalating virus woes

WTI remains heavy below 50-day SMA, drops from $41.18 to begin the week. The energy benchmark keeps trailing 50-day SMA for over two weeks while taking clues from the US-Iran tussle and the coronavirus (COVID-19) headlines. Hopes of further stimulus, China’s optimism favor energy bulls.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures