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

GBP/USD: Recovery falters just shy of 1.3400 ahead of UK PMIs

GBP/USD recovers nearly 90-pips from Friday’s NY low of 1.3306 but faces stiff resistance at 1.3400. Brexit optimism to keep the sentiment lifted around the pound. The focus remains on the UK Markit Preliminary PMIs ahead of BOE.


AUD/USD struggles to gather upside traction despite upbeat China data

AUD/USD is struggling to build bullish momentum despite the above-forecast China data. The bullish pressure remains weak, possibly due to the news that China is planning to lower its 2020 GDP target to 6% from the current year's 6.5%. 


USD/JPY bulls cling to trade deal hopes on 109 handle

USD/JPY has opened the week on the backfoot but has stablised above four-hour bullish moving averages, as well as the rising 21-DMA while risk appetite remains elevated. USD/JPY is currently trading at 109.35.


Gold: Flatlined after the biggest weekly gain since September

Gold is lacking a clear directional bias in Asia, having eked out its biggest weekly gain in nearly three months. The yellow metal is currently trading at $1,474 per Oz, representing little or no change on the day.

Gold News

Central Bank Meetings and Flash PMI Reports, but It's Over except for the Shouting

After last week's flurry of events, market activity is set to slow over the next three weeks.  But what a flurry of events it was.  A new NAFTA apparently has been agreed. This week's highlights include the flash PMIs and several central bank meetings.

Read more