- GBP/USD bulls take a breather following the heaviest run-up in two weeks.
- UK PM Johnson said US President Biden didn’t alarm about the Northern Ireland situation, Brussels-Britain agrees over fishing catch.
- US Senators unveiled infrastructure agreement, G7 may push for covid origin investigation.
- Brexit chatters, G7 deal and UK’s April data-flow become the key.
GBP/USD consolidates the heaviest jump since May 27 below 1.4200, around 1.4175 amid the early Asian session on Friday. The cable cheered receding pessimism over the Brexit and the US dollar weakness the previous day. However, bulls turn cautious ahead of multiple catalysts scheduled for publishing during the day.
US President Joe Biden’s UK visit turned out to be less pessimistic than feared as UK Prime Minister (PM) Boris Johnson said that Biden is “a big breath of fresh air”. Reuters quote Downing Street while saying, he (Johnson) and Biden agreed that both Britain and the EU had a responsibility to work together and to find pragmatic solutions to allow unencumbered trade" between Northern Ireland, Britain and Ireland."
Also, news that Brussels and Britain agreed over the fishing catch offered an extra positive on the Brexit line. However, looming uncertainty over the Northern Ireland (NI) issue could make the Group of Seven (G7) meeting the key as the EU and the UK leaders may collide over the thorny issues under the leadership of Biden.
Elsewhere, doubts over the UK’s June 21 deadline for unlock seem doubtful as Johnson recently warned over the covid cases going up “very clearly”. Earlier on Thursday, the British scientist conveyed worries over the virus strains and their spread to trigger a third wave in the economy.
On the other hand, the US inflation figures jumped more than expected but markets seemed to have prepared for it, giving a lesser reaction than fears. Even so, US Treasury yields dropped and so do the US dollar to help the GBP/USD prices. That said, US Consumer Price Index (CPI). The headline US CPI marked the fastest jump since 2008 to 5.0% YoY while the Core CPI rallied to the highest in 30 years with a 3.8% figure.
It’s worth noting that the latest news over the US policymakers’ agreement on the infrastructure spending plan of $1.7 trillion for eight years, to be agreed by the White House, offered a fresh ray of optimism to the markets.
Moving on, expectedly rough talks on Brexit and the anticipated global push against China, led by the UK-US alliance, may weigh on the GBP/USD prices. Also likely to weigh on the Sterling could be the downbeat consensus for the UK data dump.
Although 21-day EMA restricts the short-term downside of GBP/USD around 1.4130-25, the buyers have a bumpy road ahead. The monthly falling trend line near 1.4180 acts as an immediate hurdle before highlighting a downward sloping trend line from May 21, at the 1.4200 threshold. Additionally, 1.4220 and the recent multi-month top near 1.4250 act as extra filters to the north.
Additional important levels
|Today last price||1.4173|
|Today Daily Change||53 pips|
|Today Daily Change %||0.38%|
|Today daily open||1.412|
|Previous Daily High||1.4189|
|Previous Daily Low||1.411|
|Previous Weekly High||1.4249|
|Previous Weekly Low||1.4083|
|Previous Monthly High||1.4234|
|Previous Monthly Low||1.3801|
|Daily Fibonacci 38.2%||1.414|
|Daily Fibonacci 61.8%||1.4159|
|Daily Pivot Point S1||1.409|
|Daily Pivot Point S2||1.4061|
|Daily Pivot Point S3||1.4011|
|Daily Pivot Point R1||1.4169|
|Daily Pivot Point R2||1.4219|
|Daily Pivot Point R3||1.4248|
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.