• Lower than expected UK current account deficit helps ease the bearish pressure.
• The final revision of UK GDP fails to provide any additional boost.
• A follow-through USD demand further collaborates towards capping gains.
The GBP/USD pair held on to its weaker tone for the third consecutive session, albeit managed to recover some lost ground post-UK economic data.
The British Pound gained some traction, lifting the pair back above mid-1.4000s, after a surprisingly lower than expected UK current account deficit, coming in at £18.44 billion as against £22.8 billion recorded in the previous quarter and £24.0 billion expected.
Meanwhile, the final revision of UK GDP, which showed Q4 2017 economic matched original estimates and stood at 0.4% q-o-q, did little to impress the bulls and provide any additional boost.
This coupled with a follow-through US Dollar buying interest, backed by yesterday's bullish US Q4 GDP growth figures further collaborated toward capping, with the pair struggling to register any meaningful rebound.
Later during the early NA session, the US economic data - core PCE price index (the Fed's preferred inflation gauge), personal income/spending data, usual initial weekly jobless claims, Chicago PMI and revised UoM consumer sentiment - would now be looked upon for some fresh impetus.
Technical levels to watch
Immediate support is pegged near the 1.4025-20 region, below which the pair is likely to break below the key 1.40 psychological mark and head towards testing 1.3965 horizontal support. On the flip side, 1.4080-1.4100 region now seems to have emerged as an immediate hurdle, above which a bout of short-covering could lift the pair towards 1.4135-40 supply zone.
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 holds steady below 1.0600 ahead of PMIs, Powell
EUR/USD is consolidating in a narrow range below 1.0600 in early Europe on Monday. The pair keeps its calm amid a steady US Dollar, higher US Treasury bond yields and a cautious mood. US ISM PMI and Powell's speech in focus.
GBP/USD struggles to gain any meaningful traction, remains confined in a narrow band
GBP/USD struggles to gain any meaningful traction and oscillates in a narrow trading range. The risk-on impulse is seen undermining the safe-haven USD and lending support to the major. The divergent Fed-BoE policy outlook should keep a lid on any meaningful upside for the pair.
Gold: Will Fed Chair Jerome Powell rescue XAU/USD buyers?
Gold price is trading below $1,840, at its lowest level since March 10, setting off the final quarter of this year on a negative note. The USD is consolidating the previous rebound above the 106.00 level against its major peers, underpinned by a fresh upswing in the US Dollar.
Floki Inu Price Forecast: FLOKI sets stage for 30% rally
Floki Inu (FLOKI) price has triggered a quick but explosive uptrend in the last 24 hours. The uptrend has pushed the meme coin above a key hurdle and could assist FLOKI bulls in reversing the downtrend.
The week ahead - US Nonfarm Payrolls, Tesco and Wetherspoon results
We’ll get the latest US payrolls report for August this week. Having seen the Federal Reserve leave rates unchanged as expected at their recent September meeting the jury remains out as to whether we will see another rate hike at the next meeting in November.