- The GBP/USD pair trades around 1.2865 during early Thursday.
- The pair reversed from 1.2840 on news of likely delayed Brexit.
- The 1.2840 may offer immediate support contrast to 1.2920 acting as nearby resistance.
The British Pound (GBP) took a U-turn from 1.2840 against the USD while heading towards the UK markets’ open on Thursday. The pair declined Wednesday as softer than expected inflation numbers from the UK contrasted with the US consumer price index (CPI) statistics. The GBP/USD pair, also known as the Cable, received boost earlier in the day when The Times reported the news that 40 former British Ambassadors call on the Prime Minister Theresa May to delay Brexit.
On Wednesday, the GBP/USD pair weakened as January month the UK CPI lagged behind 1.9% market consensus to 1.8% on a yearly basis whereas monthly figures shrank more than -0.7% forecast to -0.8%. The British inflation numbers were in contrast to the US releases that said headline CPI YoY rose to 1.6% from 1.5% expectations while beating the 2.1% forecast for the Core CPI YoY by being unchanged at 2.2% during the first month of 2019.
At the start of Thursday, when speculations were already favoring delayed Brexit deadline, The Times reported that 40 ex-British Ambassadors urged the UK PM May to delay the Brexit deadline from presently holding 29 March. The news helped the GBP to register across the board strong on hopes of soft and/or delayed Brexit.
Looking forward, lack of British economics to publish puts higher emphasis on developments at the UK Parliament. PM May is still trying hard to get her plan through parliament rather than tabling the delay.
On the flip side, the US Treasury Secretary Steve Mnuchin and the trade representative Robert Lighthizer will start two-day trade negotiation with their Chinese counterparts headed by the President's top aide Liu He. Recent comments from the Treasury Secretary and the President signalled brighter chances of a trade deal, if not then an extension of tariffs by nearly 60 days from the March 01 deadline.
In addition to the politics, monthly release of US Retail Sales, likely to register soft growth figure of 0.1% from 0.2% prior on a monthly basis, can also play its role.
GBP/USD Technical Analysis
The pair needs to surpass the 1.2920 upside barrier in order to aim for 1.2980 and 1.3000 mark.
On the downside break of 1.2840, sellers can aim for 1.2810 and the 1.2780 supoprts.
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 holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
GBP/USD consolidates above 1.2500, eyes on US PCE data
GBP/USD fluctuates at around 1.2500 in the European session on Friday following the three-day rebound. The PCE inflation data for March will be watched closely by market participants later in the day.
Gold clings to modest daily gains at around $2,350
Gold stays in positive territory at around $2,350 after closing in positive territory on Thursday. The benchmark 10-year US Treasury bond yield edges lower ahead of US PCE Price Index data, allowing XAU/USD to stretch higher.
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.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.