GBP/USD rebounds and rises back above 1.2900, consolidates weekly gains


  • Weaker US dollar sends GBP/USD back above 1.2900. 
  • Cable remains in a big range, ahead of UK elections. 

The GBP/USD pair rebounded from 1.2880 and climbed to 1.2937, approaching weekly highs. The move took place amid a retreat of the US dollar across the board. The greenback weakened despite higher US yields. Low volume prevails on Friday amid holidays in the US. 

The US Dollar Index (DXY) reversed from monthly highs and turned negative for the day, falling below 98.30. No particular trigger was behind the reversal of the greenback while the pound held steady versus other currencies. The end of the month and low liquidity across markets probably exaggerate moves. 

Cable is about to end the week higher, with a gain of almost a hundred pips but still remains in a consolidation range, trapped between 1.2800 and 1.3000. 

Week ahead

On Monday, markets will likely be back to normal. Over the week, key economic reports from the US to be release include the ISM manufacturing and non-manufacturing indices and next Friday, the official employment report. US-China negotiations will also be watched closely. 

In the UK the economic calendar is light for next week. The only relevant report are the PMIs (final estimation).  “Focus remains on the 12 December election and its outcome. This week, saw the release of results from the acknowledged MRP model from YouGov predicting an absolute majority for the Conservative Party (359 seats versus 326 seats to secure a majority), making it possible for Boris Johnson to pass his Brexit deal before Christmas, which is  now our base case”, mentioned Danske Bank analysts. 

 

GBP/USD

Overview
Today last price 1.2926
Today Daily Change 0.0016
Today Daily Change % 0.12
Today daily open 1.291
 
Trends
Daily SMA20 1.2881
Daily SMA50 1.2708
Daily SMA100 1.2493
Daily SMA200 1.2702
 
Levels
Previous Daily High 1.2952
Previous Daily Low 1.2888
Previous Weekly High 1.2986
Previous Weekly Low 1.2821
Previous Monthly High 1.3013
Previous Monthly Low 1.2194
Daily Fibonacci 38.2% 1.2927
Daily Fibonacci 61.8% 1.2912
Daily Pivot Point S1 1.2881
Daily Pivot Point S2 1.2852
Daily Pivot Point S3 1.2816
Daily Pivot Point R1 1.2945
Daily Pivot Point R2 1.2981
Daily Pivot Point R3 1.301

 

 

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD jumps back above 0.6950 as risk-on mood dominates

Following a bearish opening gap, AUD/USD has recovered ground and trades above 0.6950, tracking the bounce in the S&P 500 futures. The bulls shrug off US-China tensions and the worsening coronavirus situation in the US and Australia. 

AUD/USD News

USD/JPY bears holding their positions below 107 level

Yen remains a safe haven currency of choice as trade wars and the coronavirus play havoc risk apatite. Investors pin hopes on Gilead Sciences reporting that its antiviral drug Remdesivir recorded positive results in clinical trials.

USD/JPY News

Gold: Pierces $1,800 inside short-term bullish flag

Gold prices extend recoveries from $1,798.14, defies two-day losing streak. A seven-day-old bullish technical pattern, sustained trading beyond immediate support favor the buyers. 200-HMA offers additional downside support, bulls will cheer break of $1,811.60.

Gold News

Data, earnings, central banks and virus cases in focus

Risk appetite took a turn for the better at the end of last week despite an array of the usual suspect risk factors (accelerating Covid-19 cases, US-China tensions, rich valuations). 

Read more

WTI: Depressed above $40 amid output cut talks

WTI defies the late-Friday recovery moves while slipping from $40.80. Saudi Arabia pushes for two million barrels a day output cut, IEA improves on oil demand forecast. Risk-tone remains mildly positive amid virus woes, US-China tension.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures