GBP/USD needs to move beyond 1.3310 to support prospects for further gains


GBP/USD regained positive traction on Friday and moved back closer to weekly tops as bulls seemed unaffected and largely shrugged off not so positive Brexit developments, FXStreet’s Haresh Menghani reports.  

Key quotes

“The British pound was underpinned by Friday's stronger-than-expected UK macro data. In fact, the headline retail sales recorded a growth of 1.2% MoM in October as against consensus estimates pointing to a flat reading. Meanwhile, the core retail sales (stripping the auto motor fuel sales) also came in better-than-expected and stood at 1.3% MoM during the reported month.”

“The EU negotiating team reportedly briefed envoys of the bloc's 27 member states that Brexit talks remain unresolved on three main issues – level playing field, fisheries and state-aid rules. In the absence of any major market-moving economic releases from the US, the incoming Brexit-related headlines will continue to play a key role in driving the near-term sentiment surrounding the major.”

“It will be prudent to wait for some follow-through buying beyond the 1.3300-1.3310 region before positioning for any further near-term appreciating move. A convincing breakthrough will be seen as a fresh trigger for bullish traders and set the stage for a move towards September daily closing highs, around the 1.3385 region, en-route the 1.3400 mark. On the flip side, immediate support is pegged near the 1.3250-45 region ahead of 1.3220 level (200-hour EMA) and the overnight swing lows, around the 1.3195 zone.”

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh two-month highs amid dollar weakness

EUR/USD has hit new two-month highs above 1.1940 as the dollar resumes its decline. Optimism about the US transition and covid vaccines is weighing on the safe-haven dollar. 

EUR/USD News

GBP/USD falls toward 1.33 amid Brexit acrimony

GBP/USD is falling toward 1.33 as both the EU and the UK are busy blaming each other for an impasse in Brexit talks. The thorny issues remain fisheries, governance and setting a level playing field.

GBP/USD News

XAU/USD attempting to bounce up from $1,775 low

Gold futures accelerated heir downtrend from last week highs near $1,900, breaking below the 200-day SMA, at $1,800 area, to hit its lowest prices in nearly five months, at $1,775.

Gold news

Dollar offered ahead of the weekend

Equities are finishing the week on a firm tone, while the US dollar remains heavy. In the Asia Pacific, only Australia and India did not end the week on a firm note.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures