GBP/USD inches closer to 1.3800 amid weaker USD, Brexit headlines

  • GBP/USD edges higher on Monday in the European trading hours.
  • The US dollar remains subdued following lower US Treasury yields, ebbing inflation fears.
  • Upbeat data, Brexit headlines, and hawkish BOE fuel gains in the sterling.

GBP/USD remains firm on the first trading day of the week in the early European session. The pair managed to gather momentum following the previous two session’s fall-off . At the time of writing, GBP/USD is trading at 1.3780, up 0.19% for the day.

The sterling keeps its foot firmly against the majors amidst the expectations that the Bank of England (BOE) will be probably the first major central bank to raise interest rates in the post-pandemic cycle but economists warned that markets are already pricing the early rate hikes.

The Brexit-led optimism uplifts the sentiment surrounding the sterling, in light of the positive comments from the UK government on the Northern Ireland (NI) protocol. Meanwhile, the IHS Markit/CIPS UK Composite PMI jumped to 56.8 in October, beating the market expectations of 54.0.
The greenback edges lower on Monday, following the Fed Chair Jerome Powell’s comment that the US central bank is ready to start tapering but remained tight-lipped on the timeline to raise interest rate hikes. Investors took remarks as a signal that the other major central banks may hike rates sooner than the Fed.
As for now, traders keep their focus on the Bank of England’s(BoE) Tenreyro's speech to gauge market sentiment.

GBP/USD technical levels


Today last price 1.3781
Today Daily Change 0.0026
Today Daily Change % 0.19
Today daily open 1.3755
Daily SMA20 1.3645
Daily SMA50 1.3712
Daily SMA100 1.38
Daily SMA200 1.385
Previous Daily High 1.3815
Previous Daily Low 1.3736
Previous Weekly High 1.3834
Previous Weekly Low 1.3709
Previous Monthly High 1.3913
Previous Monthly Low 1.3412
Daily Fibonacci 38.2% 1.3766
Daily Fibonacci 61.8% 1.3785
Daily Pivot Point S1 1.3722
Daily Pivot Point S2 1.369
Daily Pivot Point S3 1.3644
Daily Pivot Point R1 1.3801
Daily Pivot Point R2 1.3848
Daily Pivot Point R3 1.388



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 stays pressured towards 1.1200 on firmer dollar, yields

EUR/USD closes in on 1.1200, as global stocks take a plunge. The Fed's hawkishness is reverberating throughout markets, boosting the safe-haven US dollar. The US two-year Treasury yields jump to 23-month highs. US Q4 GDP awaited. 


GBP/USD hits monthly lows below 1.3450 amid Fed-led risk-aversion

GBP/USD is inching lower towards 1.3400, sitting at monthly lows amid the hawkish Fed outlook-led risk-aversion. The US dollar remains strongly bid in tandem with the Treasury yields. Brexit and UK political concerns add to the cable's downside. 


Gold bears await US Q4 GDP for the next leg lower Premium

Gold price is licking its wounds near weekly lows of $1,813, as bears take a breather in the aftermath of the Fed decision while waiting for the US advance Q4 GDP and Durable goods data. The US economy is likely to have regained steam in Q4, 2021.

Gold News

Why Bitcoin price could form a bottom following the January 28 options expiry

Bitcoin open interest volume by expiry date indicates a majority of bearish sentiment in the market. BTC options worth roughly $2 billion will expire by the end of this week. However, options expiry has correlated with massive liquidations and price crashes in the past.

Read more

US GDP Preview: Inflation component could steal the show, boost dollar. Premium

More than double than pre-pandemic – the 5% annualized growth rate expected for the fourth quarter is a reason to be cheerful. That may boost the dollar, but not stocks, which are wary of tighter monetary policy from the Fed.

Read more