GBP/USD hoping for a grasp on 1.2900 ahead of Tuesday's UK Earnings report

Sterling once again slips the 1.2900 level as Brexit hopes turn back into angst once more.
Key UK data for today could further derail GBP bulls if the numbers miss the mark.

Joshua Gibson FXStreet

The GBP/USD is trading into 1.2875 after making a run at the 1.2900 handle in the early Tuesday window, but renewed Brexit concerns are seeing the Pound get hobbled in the broader marketscape, with previous hopes for a last-minute deal appearing this week once again getting dashed on the rocks.

Early Tuesday action sees the GBP getting a relief bounce as the US Dollar pauses across the board, but a continued bull-run is looking unlikely unless today's UK earnings figures can distract investors from the notable lack of forward momentum on Brexit proceedings.

09:30 GMT today sees the latest quarterly Average Earnings for the UK, with Earnings plus bonuses for the annualized quarter into September expected to print at 3.0%, a tick healthier than the previous quarter's 2.7%, while Average Earnings excluding bonuses is expected to remain steady at 3.1%.

On the Brexit front, hopes for the skeleton of a workable Brexit deal to be presented at the EU's Brexit summit this month, and with UK Prime Minister Theresa May being forced to cancel an emergency Brexit cabinet meeting amidst backlash from within her own parliament, hopes are waning for any progress to be announced before December's meeting as well, and steadily-deflating expectations for a soft-Brexit scenario are going out the window, and taking the Pound's exchange rate with them.

GBP/USD Levels to watch

The Cable heads into Tuesday's data reading with a heavy heart, and as FXStreet's own Valeria Bednarik noted, "the risk remains skewed to the downside, as in the 4 hours chart, technical indicators corrected extreme oversold conditions before resuming their declines, now maintaining their bearish slopes, while the price develops well below its moving averages. The 20 SMA gains downward traction and is about to cross below the 200 EMA, this last at around 1.3015. The decline is set to extend as long as Brexit negotiations remain in a stalemate on the Irish border."

Support levels: 1.2825 1.2790 1.2750

Resistance levels: 1.2880 1.2935 1.2960

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.