- GBP flattens out at the 1.33 key level after slipping on renewed Brexit concerns for the new week.
- Mid-tier data for Tuesday will be seeing risk appetite deciding the pair's direction.
The GBP/USD is trading near the 1.3300 major handle ahead of Tuesday's London session after declining in Monday's action.
The Sterling knocked lower on Monday after the UK Construction PMI for May came in unchanged, piling on in a week that has already seen Brexit concerns swing back to the forefront, with little resolution seen on the current Ireland border issues, post-Brexit trade conditions, and a Brexit withdrawal bill due in the House of Commons on June 12th. The GBP has managed to hit the brakes on the decline, and has steadied out near the 1.3300 major level after clocking in a daily high just beneath 1.3400 in Monday's trading.
Tuesday brings the UK's Markit Services PMI for May, expected at 53.0 compared to the previous reading of 52.8. The BRC Like-For-Like Retails Sales indicator dropped some positive figures in the late Monday session, printing at 2.8% compared to the expected 0.8% drawdown and the previous contraction of -4.2%.
GBP/USD levels to watch
FXStreet Chief Analyst Valeria Bednarik on the Sterling's technical stance heading into Tuesday's London markets: "the GBP/USD pair 4 hours' chart presents a neutral stance heading into the Asian session, as the pair is now struggling around a flat 20 SMA, while technical indicators have pulled back from near overbought readings, the Momentum now heading nowhere around its 100 level, but the RSI maintaining the downward slope at 46, leaning the scale toward the downside for the upcoming sessions."
Support levels: 1.3290 1.3245 1.3200
Resistance levels: 1.3375 1.3420 1.3460
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.
Recommended content
Editors’ Picks
EUR/USD alternates gains with losses near 1.0720 post-US PCE
The bullish tone in the Greenback motivates EUR/USD to maintain its daily range in the low 1.070s in the wake of firmer-than-estimated US inflation data measured by the PCE.
GBP/USD clings to gains just above 1.2500 on US PCE
GBP/USD keeps its uptrend unchanged and navigates the area beyond 1.2500 the figure amidst slight gains in the US Dollar following the release of US inflation tracked by the PCE.
Gold keeps its daily gains near $2,350 following US inflation
Gold prices maintain their constructive bias around $2,350 after US inflation data gauged by the PCE surpassed consensus in March and US yields trade with slight losses following recent peaks.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.