GBP/USD off-lows, re-attempts 1.3950

  • Upside remains capped by 1.4000.
  • Risk-off back in vogue?

The GBP/USD pair broke its Asian consolidative mode to the upside in a bid to test the 1.4000 mark, but in vain, as the bear fought back control and pushed the rates back towards the 1.39 handle amid a turnaround in risk condition and Brexit headlines.

A senior UK official was quoted by Bloomberg, as saying that the Brexit plan is unlikely to be agreed on by the UK PM May’s Cabinet this week. The latest Brexit news adds to the selling bias seen around the pound.

Meanwhile, the cross-driven play remains the main driver behind Cable’s weakness, with the GBP/JPY cross heavily sold-off into Yen demand, as risk-off flows appear to seep back into Europe. The European equities and oil prices struggle to retain the bids while Treasury yields remain on the back amid a lack of risk appetite across the financial markets.

However, the downside stalled near 1.3920 region, despite downbeat UK house prices data, as attention shifts to the ECB non-monetary policy meeting, in which the policymakers are likely to discuss the Brexit issue.

GBP/USD levels to watch

Karen Jones, Analyst at Commerzbank, noted, “GBP/USD so far has sold off to the 1.3836 February 2016 low, which is holding. Intraday rallies will ideally struggle 1.4010/60 for an immediate downside bias to be maintained. Failure here should see a deeper sell-off back to the 1.3658 September peak. Key medium-term support is the 1.3372 2016-2018 uptrend. It recently failed at the 50% retracement of 1.4345 of the move down from the 2014 peak. This is reinforced by the 200-week moving average at 1.4373. We continue to view this as an interim top for the market and look for further weakness”.


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 sidelined around 1.1650, monthly resistance line in focus

EUR/USD picks up bids to 1.1642, keeping the two-day advances intact during the early Asian session on Monday. The currency major pair stays firmer above 10-day and 21-day EMAs amid bullish MACD signals. August month’s low adds to the upside filters.


GBP/USD: Buyers defends 1.3750 below 100-day SMA

GBP/USD edges higher on the first trading day of the week in the Asian trading hours. The pair faces strong resistance near 1.3850 below the bearish sloping line. MACD signals sideways momentum with the underlying neutral sentiment.


Gold: Bears lurking at weekly trendline resistance

The price of gold has been supported by a dynamic weekly/daily trendline where bulls consolidated and finally made a break for the upside in the latter part of the week. The price move into the $1,800s but has failed to take out the weekly trendline resistant, so far. 

Gold News

Crypto bulls unfazed by flash crash

BTC closed more than 5% lower on the Thursday session, but buyers have stepped in to hold the Tenkan-Sen as support. ETH action shows that the recent rejection has caused some indecision. XRP does not have far to move to initiate a massive bullish breakout.

Read more

Apple talks over battery supplies for EV stall-Reuters

Apple (AAPL) is on a steady move higher ahead of results next week. We have had solid earnings from big names already such as Tesla (TSLA) and Netflix (NFLX), but Apple is the biggest one of all and will be the highlight of the earnings season for many.

Read more