GBP/USD re-takes 1.2900 amid Brexit pessimism, US GDP eyed


  • The Pound joins rest of the major currencies and rises against the greenback ahead of important data, i.e. the US GDP.
  • However, a break of 1.2965/70 becomes necessary to justify recent recovery.

GBP/USD revisits 1.2900 mark while heading into the London open on Friday as investors rushed to take their greenback profits off ahead of US GDP whereas the absence of major Brexit negative news off-late also favors the pullback.

The GBP/USD pair dropped to ten-week low on Thursday as Brexit deadlock and doubts over the future position of the UK PM Theresa May continued to hurt the British Pound (GBP) against the majority of its counterparts.

On Friday, traders preferred taking their USD gains off ahead of the crucial preliminary reading of first quarter (Q1) 2019 gross domestic product.

Risk-off also took place as trade negotiations seem to stumble due to the US proposal of currency linkages to trade while discussing the deal with China and Japan.

10-year US treasury yield, mostly known as global risk barometer, struggles around 2.53%.

Other than the US Q1 2019 GDP that’s likely to flash 2.1% annualized growth versus 2.2% prior, monthly reading of the US Michigan consumer sentiment index (April) may also be observed. The consumer confidence gauge may rise to 97.0 from 96.9.

It should also be noted that there isn’t any major data from the UK, which in turn continues to emphasize Brexit as a strong catalyst for the Cable.

Recent news reports suggest that stalled cross-party talks exert additional pressure on the PM May to respect other lawmakers’ demand which also includes removing Irish backstop and/or allowing Wales a separate status from the UK.

Technical Analysis

Even if the present recovery manages to rise beyond 1.2920 immediate resistance, 100-day and 200-day simple moving average (SMA) confluence near 1.2965/70 can still challenge buyers targeting 1.3000 and 1.3030 numbers to the north.

Meanwhile, 1.2870 and 1.2830 can offer nearby supports to the prices prior to highlighting February lows near 1.2770.

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

Editors’ Picks

EUR/USD holds its ground amid mixed EU election results

EUR/USD is stable around 1.1200 amid mixed EU elections in which main parties lost ground to both centrist and extreme ones.  Trump said he hopes for a deal with China. Liquidity is thin due to a UK holiday.

EUR/USD News

GBP/USD falls on Brexit concerns, USD strength

GBP/USD has fallen below 1.2700 as markets digest the EU elections and see a growing chance of a hard Brexit after Farage's victory. The USD is gaining strength amid trade concerns. 

GBP/USD News

USD/JPY: bearish case firm as long as below 109.65

After closing the previous week in the negative territory, the USD/JPY pair staged a modest recovery but struggled to gather momentum amid thin trading volume on Monday. The pair was up 0.18% on a daily basis 109.48.

USD/JPY News

The Evolution of Three Issues are Key in the Week Ahead

As May winds down, the light economic calendar will allow investors to take their cues from the evolution of three disruptive forces--trade, Brexit and the US economy.  With actions against Huawei and possibly a handful of Chinese surveillance equipment producers, the US raised the stakes.

Read more

Gold: Set-up points to additional gains, move beyond $1287-89 supply zone awaited

Gold lacked any firm directional bias and seesawed between tepid gains/minor losses through the mid-European trading session on Monday. Technical set-up now seems to have turned in favor of bullish traders. 

Gold News

Editors' pick

EUR/USD holds its ground amid mixed EU election results

EUR/USD is stable around 1.1200 amid mixed EU elections in which main parties lost ground to both centrist and extreme ones.  Trump said he hopes for a deal with China. Liquidity is thin due to a UK holiday.

EUR/USD News

GBP/USD falls on Brexit concerns, USD strength

GBP/USD has fallen below 1.2700 as markets digest the EU elections and see a growing chance of a hard Brexit after Farage's victory. The USD is gaining strength amid trade concerns. 

GBP/USD News

USD/JPY: bearish case firm as long as below 109.65

After closing the previous week in the negative territory, the USD/JPY pair staged a modest recovery but struggled to gather momentum amid thin trading volume on Monday. The pair was up 0.18% on a daily basis 109.48.

USD/JPY News

The Evolution of Three Issues are Key in the Week Ahead

As May winds down, the light economic calendar will allow investors to take their cues from the evolution of three disruptive forces--trade, Brexit and the US economy.  With actions against Huawei and possibly a handful of Chinese surveillance equipment producers, the US raised the stakes.

Read more

Gold: Set-up points to additional gains, move beyond $1287-89 supply zone awaited

Gold lacked any firm directional bias and seesawed between tepid gains/minor losses through the mid-European trading session on Monday. Technical set-up now seems to have turned in favor of bullish traders. 

Gold News

eur/gbp

central banks

eur/usd

gbp/usd

usd/jpy

aud/usd

Signatures

bitcoin

ethereum

ripple


  •  
  •  
  •  
  •  
  •