GBP/USD: Modestly flat ahead of UK Chancellor’s visit to Berlin

  • GBP/USD stabilizes after Thursday’s recovery.
  • The opposition Labour party leader Jeremy Corbyn struggles to become the interim PM.
  • Sajid Javid becomes the first from Johnson and Company to visit Berlin and discuss Brexit today.

Following its data-backed recovery, the GBP/USD pair trades modestly unchanged to 1.2090 while heading into the London open on Friday.

Thursday’s UK Retail Sales data provided firm support to the Cable despite political uncertainty at home. However, overall market support to the US Dollar (USD) restricted pair’s upside.

As per UK Express, around 50 members of the opposition Labour party are ready to join Tory rebels to stop no-deal Brexit while the Sun previously quoted few lawmakers regretting to turn Theresa May’s Brexit for the third time. On the positive side, Jeremy Corbyn is facing troubles as he stands firm to become the interim Prime Minister (PM) in a case they win a no-confidence vote during early September.

Further, the US President Donald Trump signalled brighter chances of strong trade ties with the UK under PM Boris Johnson and his team.

Looking forward, British Chancellor of Exchequer Sajid Javid will travel to Berlin today as the first from the PM Johnson’s team. He will meet Germany’s finance minister Olaf Scholz and will discuss Brexit deal as well.

While lack of data from the UK will push traders to closely observe Brexit headlines for fresh directions, July month Housing Starts and Building Permits, coupled with the Michigan Consumer Sentiment Index for August, from the US will keep filling the momentum. Forecasts suggest the US housing market numbers to keep portraying robust picture but an expected pullback in consumer sentiment gauge may stop the greenback from the further rise.

Technical Analysis

1.2105/10 comprising 200-hour moving average (HMA) seem nearby key resistance holding the gates for 1.2160 and 1.2210 while 1.2071/70 support confluence including 100-HMA and 23.6% Fibonacci retracement of July 31 to August 11 downpour can limit immediate declines.

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 flirts with 1.1100 as the dollar loses steam

The EUR/USD pair bounced from a daily low of 1.1065, as demand for the greenback receded during US trading hours. Upside caped for the shared currency amid fears of a German recession, Italian political turmoil.


GBP/USD losses upside momentum at the start of the key day

While optimism surrounding soft Brexit helped the GBP/USD pair to rise on the previous day, the Cable retraces to 1.2165 amid initial Wednesday morning in Asia. The UK PM’s visit to Germany will be closely observed.


USD/JPY: bears moving back to the front

Demand for safe-haven assets picked up in the American session. US 10-year Treasury note yield fell to 1.54% intraday, settles barely above. USD/JPY to resume decline on a break below 106.05, a Fibonacci support.


Gold: Bulls cheer pullback from 10-day EMA

Following its successful bounce off 10-day exponential moving average (EMA), Gold takes the bids to $1507 during the early Asian session on Wednesday. The yellow metal now heads to Friday’s high around $1528 ahead of questioning the monthly top surrounding $1535.

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