GBP/USD holds weaker near daily lows, below mid-1.2900s


   •  Disappointing UK monthly retail sales data prompt some long-unwinding trade.
   •  Subdued USD price action seemed to help limit any deeper slide, at least for now.

The GBP/USD pair remained under some selling pressure through the mid-European session and is currently placed at the lower end of its daily trading range, around the 1.2930-40 region. 

After yesterday's strong upsurge to the key 1.30 psychological mark, the highest since mid-November, the pair lost some ground and was further weighed down by the disappointing release of UK monthly retail sales data. 

With plenty of Brexit uncertainties still on the table, the dismal UK macro data prompted traders to lighten their bets, especially after a strong upsurge of over 300-pips from Tuesday's swing lows near the 1.2670-65 region.

The downside, however, remained cushioned expectations for an extension of Article 50, despite repeated denials by the UK government, and the market stance of a diminishing hard Brexit risk. 

This coupled with a subdued US Dollar price action and absent relevant market moving economic releases from the US might further collaborate towards limiting any meaningful downfall, at least for the time being.

Technical levels to watch

Any subsequent slide is likely to find strong support near 100-day SMA, around the 1.2900 region, below which a fresh bout of technical selling might drag the pair further towards the 1.2865-55 horizontal support. 

On the flip side, the 1.2990-1.3000 region might continue to act as an immediate hurdle, which if cleared should continue boosting the pair further towards 1.3070 intermediate resistance en-route the 1.3100 handle.
 

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 struggles below 1.1100 amid stimulus concerns

EUR/USD remains on the back foot below 1.1100 as investors fear that Germany's potential stimulus package will be insufficient. Tension is mounting toward Powell's critical speech on Friday.

EUR/USD News

GBP/USD struggles with 1.2100 amid growing Brexit uncertainty

GBP/USD is trading close to 1.2100, down. UK PM Johnson's request to abandon the Irish backstop in the Brexit accord was rebuffed by the EU ahead of top-level meetings.

GBP/USD News

USD/JPY retraces from 3-day top as risk-on takes a breather

The Asian traders look for further details to extend the USD/JPY pair’s previous run-up as a pullback emerges on the chart around 106.60 heading into Tuesday’s European session.

USD/JPY News

Gold: Bearish outside bar reversal favors drop to $1,480

Gold closed well below $1,504 on Monday, validating the bearish outside bar candlestick pattern created on Friday. A bearish outside bar candle occurs when the price action for a specific day falls outside the high and low of the preceding day.

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Planning the next bullish move after consolidating gains

Trading cryptos is not a one-way street – meteoric unstoppable gains belong to the past. Nevertheless, the bullish sentiment seems to prevail. Digital coins advanced on Monday and are consolidating on Tuesday. 

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •