GBP/USD retraces three-day losses below 1.2200 on UK/US holiday


  • GBP/USD sellers catch a breather amid a lack of major catalysts on Spring Bank Holiday.
  • UK PM Johnson gets criticized while favoring Adviser Dominic Cummings.
  • US-China tussle intensifies with markets awaiting US President Trump’s reaction over the Hong Kong issue.
  • Schools in England will restart on June 01, Tories planning to bail out large companies affected by the virus.

GBP/USD seesaws around 1.2180, up 0.05% on a day, during the pre-European session on Monday. In doing so, the Cable pair snaps the previous three-day losing streak on the day when the UK and the US markets are off for a holiday.

Even so, the US-China tussle over Hong Kong keeps the traders worried. As per the latest updates from NBC, the White House National Security Adviser Robert O'Brien cited the odds of levying sanctions on China and Hong Kong if Beijing moves ahead with a proposed national security law. Though US President Donald Trump is yet to embark upon the issue and hence traders await the Republican leaders’ response while catching a breath from the latest risk aversion wave.

On the other hand, UK PM Boris Johnson is accused of wrongdoing by Tory rebels as he favors Adviser Dominic Cummings despite breaking the coronavirus (COVID-19) code of conduct. Elsewhere, the Financial Times came out with the news indicating the Tory government’s efforts to bail out the big firms in the steel and aviation industry that are being hurt by the virus. Further, UK PM Johnson said, by the BBC, to announce the reopening of schools by June 01. In doing so, the Tory leader pays a little heed to the schools restart in Northern Ireland, Wales and Scotland that have a longer time to recall the students.

It’s worth mentioning that the UK government has recently stepped back from allowing to use Huawei’s 5G networks. The Sydney Morning Herald quotes a spokesperson for the British government who said, "Following the US announcement of additional sanctions against Huawei, the National Cyber Security Centre is looking carefully at any impact they could have on the UK's networks."

That said, the market’s risk-tone remains sluggish with the US stock futures flashing mild gains whereas the Asian equities register mixed moves.

Considering the lack of major data/events, the pair traders will keep eyes on the US-China drama for fresh direction.

Technical analysis

A daily closing beyond a 50-day SMA level of 1.2275 can escalate the recovery moves towards 1.2300 and then to the early-month top near 1.2470. Until then, odds for the pair’s drop to refresh the monthly low of 1.2075 remain brighter.

Additional important levels

Overview
Today last price 1.2178
Today Daily Change 4 pips
Today Daily Change % 0.03%
Today daily open 1.2174
 
Trends
Daily SMA20 1.2334
Daily SMA50 1.2274
Daily SMA100 1.2623
Daily SMA200 1.2666
 
Levels
Previous Daily High 1.2234
Previous Daily Low 1.2162
Previous Weekly High 1.2296
Previous Weekly Low 1.2076
Previous Monthly High 1.2648
Previous Monthly Low 1.2165
Daily Fibonacci 38.2% 1.2189
Daily Fibonacci 61.8% 1.2206
Daily Pivot Point S1 1.2146
Daily Pivot Point S2 1.2118
Daily Pivot Point S3 1.2074
Daily Pivot Point R1 1.2218
Daily Pivot Point R2 1.2262
Daily Pivot Point R3 1.229

 

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD nears 1.19 amid mixed US data

EUR/USD is trading close to 1.19, extending its gains after ADP's private-sector report badly misses expectations with an increase of only 167,000 jobs in July. The greenback had already been falling with yields. The ISM Non-Manufacturing PMI beat with 58.1. 

EUR/USD News

XAU/USD bulls unstoppable, renews life-time highs near $2040

With ‘buy the dips’ emerging as the main underlying theme behind the gold price action so far this week, the bulls flex their muscles further to record fresh all-time highs near $2040.

Gold News

GBP/USD trades well above 1.31 amid dollar weakness

GBP/USD is advancing towards this month high at 1.3169, recovering as the dollar retreats. The UK government is under scrutiny for its management of the virus crisis. US Services PMIs are eyed. The ADP NFP missed with 167K.

GBP/USD News

ETH/BTC on retreat, BTC recovery gains traction

ETH/BTC has topped at $0.03528 on Tuesday and retreated to $0.03448 by the time of writing. The cross has lost about 1% since the start of the day. The RSI on a daily chart reversed to the downside, signaling that the price is ready for a correction from overbought territory.

Read more

WTI hits fresh two-week highs near $42.50 ahead of EIA data

WTI (futures on Nymex) extends its winning-streak into the third straight day on Wednesday, as the bulls challenge the July high of $42.51.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures