- DXY, USTs on the back foot on US tax re-vote.
- Brexit optimism support on May & Trump agreement.
- The UK CBI realized sales and BOE Carney’s speech in focus.
After a brief stint of consolidation in early trades, the GBP/USD pair resumed its recent upmove and regained the 1.34 handle on Brexit optimism, but the buyers failed to retain control above the last, as sentiment sours on the back of the latest North Korea headlines.
GBP/USD hits fresh 2-day tops, then retreats.
The Cable remains better bid amid a phase of downside consolidation seen in the US dollar against its major peers, as the USD bulls remain on the back foot amid the renewed selling seen around the Treasury yields ahead of the US tax reform re-vote.
Brexit: BOE to soften impact on European banks - BBC
The upbeat tone seen around the pound is also driven by the reports citing that the UK PM Theresa May and the US President Trump agreed on the importance of a swift post-Brexit bilateral trade deal over a telephonic conversation late-Tuesday.
However, it remains to be seen if the major can sustain another break above 1.34 handle, as the Brexit jitters persist, with the EU making the Brexit transition a difficult task for the UK while the latest North Korea news dent the sentiment around the higher-yielding GBP.
In the meantime, the focus remains on the UK CBI realized sales data and BOE Governor Carney’s testimony on the November Financial Stability Report before the Treasury Select Committee, which will offer fresh impetus to the GBP.
Also, of note remains the US existing home sales data and tax vote which is scheduled later in the NA session today.
GBP/USD Technical Levels
According to FXStreet’s Chief Analyst, Valeria Bednarik, “technical indicators in the mentioned (4-hours) chart fail to support a downward extension, as the Momentum maintains a positive stance while the RSI turned higher, currently at 50, rather supporting additional gains for the upcoming sessions. The pair keeps trading inside a descendant channel, with a critical support around 1.3300, where buying interest has been surging this month. Support levels: 1.3335 1.3300 1.2960. Resistance levels: 1.3400 1.3440 1.3485.”
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
AUD/USD gains momentum above 0.6500 ahead of Australian Retail Sales data
AUD/USD trades in positive territory for six consecutive days around 0.6535 during the early Asian session on Monday. The upward momentum of the pair is bolstered by the hawkish stance from the Reserve Bank of Australia after the recent release of Consumer Price Index inflation data last week.
EUR/USD: Federal Reserve and Nonfarm Payrolls spell action this week
The EUR/USD pair temporarily reconquered the 1.0700 threshold last week, settling at around that round level. The US Dollar lost its appeal following discouraging United States macroeconomic data indicating tepid growth and persistent inflationary pressures.
Gold: Strength of $2,300 support is an encouraging sign for bulls
Gold price started last week under heavy bearish pressure and registered its largest one-day loss of the year on Monday. The pair managed to stage a rebound in the second half of the week but closed in negative territory.
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
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.