GBP/USD remains capped by 1.3450 on EU Juncker’s comments

DXY resumes selling in Europe.
Bounce stalls on EU Juncker’s comments.
US industrial production data in focus.

Dhwani Mehta FXStreet

The range-trade in the GBP/USD pair extends into the European session, with the rates moving back and forth amid a lack of fresh catalysts, while Brexit headlines continue to drive the GBP markets.

GBP/USD: Will it take-out 1.3450?

The Cable failed yet another attempt to surpass the key 1.3450 barrier, as the latest remarks from the EU Commission Chief Juncker triggered a fresh selling wave around the pound. Moreover, the UK Times report that the UK PM Theresa May is expected to back down on Brexit date plan, also keeps any recovery moves short-lived.

EU’s Juncker: Second phase of Brexit talks will be far more difficult than the first

However, the bulls continue to find support near 1.3425 region amid persistent selling seen around the US dollar against its major peers, as markets remain uncertain over the progress on the US tax reform bill.

Looking ahead, the BOE MPC member Haldane’s speech is eagerly awaited ahead of the US industrial production, capacity utilization and Empire State manufacturing index releases.

GBP/USD Technical Levels

According to Jim Langlands at FX Charts: “While the daily charts look inconclusive the 4 hour indicators are pointing to further gains for Sterling, so buying dips towards 1.3400, with a SL below 1.3365 would seem to be a plan, looking for a run back to 1.3500 and possibly towards 1.3520 – last week’s high. Given the absence of any data today it may just be another choppy session, using 1.34/1.35 as a guide.”

Resistance		Support
1.3520	8 Dec high	1.3390	Session low
1.3500	Minor	1.3375	100 HMA
1.3475	Minor	1.3345	Minor
1.3465	Session high	1.3310	13 Dec low
1.3450	Minor	1.3303	12 Dec low

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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