• GBP weighed down by the weekend Brexit news.
• The post-NFP USD recovery prompts additional selling.
After an initial uptick to 1.3585 area, the GBP/USD pair met with some fresh supply and dropped to session low during the early European session.
Sentiment around the British Pound weakened a bit following the weekend Brexit news, citing that the UK PM May will appoint a Cabinet Minister, who will provide regular updates on preparations for leaving the EU 'without a trade deal'.
Meanwhile, the latest leg of retracement slide, of over 40-pips from session tops, lacked any obvious catalyst and was solely led by an extension of the post-NFP US Dollar recovery move.
Despite Friday's mixed results from the US monthly jobs report, a goodish pickup in the US Treasury bond yields, amid growing expectations for a March Fed rate hike move, underpinned the greenback demand and contributed towards capping the pair below the 1.3600 handle.
Traders now look forward to the release of UK Halifax HPI data and Fedspeak for some fresh trading impetus. The key focus, however, would be on this week's US inflation figures, which along with other important macro releases would help investors determine the pair's next leg of directional move.
Technical levels to watch
Immediate support remains near the 1.3500-1.3490 region, which if broken could accelerate the slide back towards the 1.3435-30 intermediate support en-route the 1.3400 handle. On the upside, the 1.3585 region now seems to have emerged as immediate resistance and is closely followed by a strong hurdle near the 1.3600 handle.
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.