GBP/USD holds steady near daily tops, just below 1.3300 mark


  • GBP/USD gained positive traction on Friday and seemed unaffected by Brexit headlines.
  • EU envoys were briefed that Brexit talks remain unresolved on three key sticking points.
  • A subdued USD price action did little to influence or provide any impetus to the major.

The GBP/USD pair held on to its intraday gains through the mid-European session, albeit lacked any follow-through buying and remained below the 1.3300 mark.

The pair managed to regain some positive traction on the last trading day of the week and built on the previous day's rebound from sub-1.3200 levels. The British pound got a minor lift following the release of better-than-expected UK Retail Sales figures and seemed rather unaffected by persistent Brexit-related uncertainties.

The EU negotiating team briefed envoys of the bloc's 27 member states that Brexit talks remain unresolved on three sticking points – level playing field, fisheries and state-aid rules. Separately, EU diplomat was quoted saying that gaps were only slowly shrinking on core issues and added that there were growing concerns about the time left.

It is worth recalling that in-person talks were suspended on Thursday after a member of the EU team was tested positive for COVID-19. Negotiations will now continue to next week and a deal needs to be struck next week in order to facilitate the translation and ratification before the end of Brexit transition period on December 31.

On the other hand, the US dollar struggled to gain any meaningful traction on the back of conflicting reports about the US COVID-19 relief package. Reports indicated that US Senate Republican and Democrat leaders had agreed to resume negotiations on coronavirus stimulus measures. The positive development, to a larger extent, was offset by the US Treasury Secretary Steven Mnuchin's decision to end some of the pandemic relief for struggling businesses.

Meanwhile, concerns about the economic fallout from new COVID-19 restrictions in several US states have been fueling speculations for additional monetary easing by the Fed. This, along with a weaker tone surrounding the US Treasury bond yields, capped the upside for the greenback and remained supportive of the bid tone surrounding the GBP/USD pair.

In the absence of any major market-moving economic releases from the US, the incoming Brexit-related headlines will continue to play a key role in influencing the GBP/USD pair. From a technical perspective, bulls might still wait for a sustained move beyond the recent swing highs, around the 1.3310 region, before positioning for any further appreciating move.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3278
Today Daily Change 0.0004
Today Daily Change % 0.03
Today daily open 1.3274
 
Trends
Daily SMA20 1.3106
Daily SMA50 1.2989
Daily SMA100 1.2974
Daily SMA200 1.2718
 
Levels
Previous Daily High 1.3279
Previous Daily Low 1.3196
Previous Weekly High 1.3314
Previous Weekly Low 1.3107
Previous Monthly High 1.3177
Previous Monthly Low 1.282
Daily Fibonacci 38.2% 1.3247
Daily Fibonacci 61.8% 1.3228
Daily Pivot Point S1 1.322
Daily Pivot Point S2 1.3166
Daily Pivot Point S3 1.3137
Daily Pivot Point R1 1.3304
Daily Pivot Point R2 1.3333
Daily Pivot Point R3 1.3387

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD advances after US PCE inflation

EUR/USD pressures weekly highs as US core PCE inflation jumped to 3.4% YoY in May, as expected. High yielding assets accelerate their advances to the detriment of the greenback, as government bond yields hold steady.

EUR/USD News

GBP/USD battles with 1.3900, still affected by BOE’s decision

GBP/USD remains depressed around 1.3900, pressured by the dovish BOE's surprise offsetting the renewed weakness in the US dollar. Worsening market mood amid Delta covid strain concerns weigh on the pound

GBP/USD News

XAU/USD rises towards key $1794 resistance ahead of US PCE inflation

Gold is picking up the bid tone in European trading, taking advantage of the retreat in the US Treasury yield and the dollar across the curve. 

Gold News

SafeMoon Price Prediction: SAFEMOON ponders 25% advance

SafeMoon price has underperformed relative to top altcoins but is preparing for a move higher. A retest of the range low at $0.00000257 seems likely before SAFEMOON catapults.

Read more

US PCE inflation preview: Data likely to reaffirm FOMC's hawkish tilt

The US Bureau of Economic Analysis will release the PCE inflation report on Friday, June 25. Markets expect the Core PCE Price Index, the Federal Reserve’s preferred gauge of inflation, to rise to 3.4% on a yearly basis in May from 3.1% in April.

Read more

Forex MAJORS

Cryptocurrencies

Signatures