GBP/USD retraces some gains amid lack of fresh catalysts, USD pullback

  • UK political pessimism, Brexit uncertainty fail to drag GBP/USD down amid dovish Fedspeak.
  • No immediate data, absence of catalyst during early Asian session limit the pair moves.

With the US Federal Reserve policymakers keep favoring the easy monetary policy, pessimism surrounding the UK couldn’t derail the GBP/USD pair’s recovery as it trades near 1.2525 amid initial Friday session.

While second-day of the Fed Chair Jerome Powell’s Testimony and comments from notable Fed officials continued playing the tune of rate cuts, the US Dollar (USD) extended its downpour on Thursday before recently witnessing a pullback.

The UK Prime Minister (PM) frontrunner Boris Johnson keep struggling to justify why he did not favor the out-going British ambassador to the US whereas the opposition Labour party also came under fire on allegations indicating anti-Semitism by key members.

The European Commission leader nominee, Ursula von der Leyen, reiterated her refrain from discussing the Brexit deal with the UK’s new PM while also supporting hard Irish border.

Lack of economic data on the calendar might keep pushing investors toward political/trade headlines, where the sentiment hasn’t been positive off-late, for fresh direction.

Technical Analysis

Unless breaking 1.2500 chances of the pair’s run-up towards 21-day exponential moving average (EMA) level of 1.2595 can’t be denied, which in turn dims prospects of the pair’s declines to 1.2440, followed by current month low near 1.2430.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: bears pressuring, 1.0980 critical support

Risk aversion took over the FX board on Friday, weighing on high-yielding assets. The EUR/USD pair, finished the week just a handful of pips above the 1.1000 figure amid mounting tensions between the US and China.


GBP/USD: at risk of losing more ground in the short-term

The GBP/USD pair advanced up to 1.2581, it highest in over two months, but was unable to sustain gains, ending the week around 1.2470. Cable could keep losing ground on a break below 1.2460, the immediate support.


USD/JPY: at a bring of breaking lower

Fresh risk-off flows resulted in the USD/JPY pair trimming weekly gains on Friday, ending the week at 107.55. The pair barely holding above a critical Fibonacci support at 107.45. Japan’s National inflation steady at lows in August.


Gold climbs further beyond $1500 mark, lacks follow-through

Gold edged higher for the second consecutive session on Friday, albeit remained well within a familiar trading range held over the past two weeks or so.

Gold News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Ethereum points to the Moon as Bitcoin takes a break

ETH/USD exceeds $220 and is bidding to lead the market. Bitcoin sets a bear trap and recaptures $10,000. XRP stalls between technical levels and fails to consolidate $0.30.

Read more