GBP/USD holds weaker below 1.3100 mark, flirting with lows ahead of US data


   •  Finds some support on stronger UK wage growth data/persistent USD selling.
   •  Brexit uncertainties hold investors from placing aggressive bets and cap gains.

The GBP/USD pair extended its sideways consolidative price action through the mid-European session and is currently placed at the lower end of its daily trading range, around the 1.3075-70 region. 

After yesterday's attempted move higher, though once again failed to make it through the 1.3120-30 region, the pair edged lower on Tuesday but managed to find some support following the release of strong UK wage growth data.

This coupled with persistent US Dollar selling bias, amid expectations there interest rates will stay where they are at least until the end of this year, extended some additional support and helped limit any meaningful downfall. 

Despite the positive factors, the pair remained well within the recent familiar trading range held over the past one week or so in wake of the lack of progress in the UK cross-party talks to break the Brexit deadlock

Hence, it would be prudent to wait for a sustained break in either direction before positioning for the near-term trajectory as traders now look forward to a relatively thin US economic docket for some short-term impetus.

Technical levels to watch

Yohay Elam, FXStreet own Analyst writes: “Support awaits at 1.3050 that held the pair last week. Further down, 1.3030 provided support in the previous week. 1.2985 was April's low and 1.2960 was the trough in March.”

“Resistance awaits at 1.3120 which capped the pair several times in recent weeks. 1.3200 is a round number and the high point in April. It is followed by 1.3270 which was a stubborn cap in late March,” he added further.

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 trims early gains, dangerously close to 1.1200

The positive tone of the pair fades in the American afternoon as demand for the dollar resumes, despite softer-than-expected US data. All eyes on the Fed this week.

EUR/USD News

GBP/USD extends decline, pierces 1.2550

Despite moving in slow-motion, GBP/USD decline is continuous with the pair trading at levels last seen in January, amid political uncertainty weighing on Sterling.

GBP/USD News

USD/JPY remains directionless above mid-108s on Monday

The USD/JPY pair is struggling to make a decisive move in either direction on Monday as the slightly upbeat market sentiment doesn't allow the safe-haven JPY to gather strength.

USD/JPY News

Gold remains on track to close with small losses below $1340

The XAU/USD pair, which closed higher on the weekly chart for the fourth straight time last week, is fluctuating in a relatively tight range on Monday amid a lack of significant fundamental drivers that had a lasting impact on the greenback's market valuation or the risk perception.

Gold News

Gold: Signs of bullish exhaustion ahead of the Fed

Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision.

Read more

Majors

Cryptocurrencies

Signatures