GBP/USD retreats from five-week top to sub-1.2600 area amid quiet session


  • GBP/USD snaps five-day winning streak to take U-turn from 100-day SMA, still above 1.2500.
  • The UK think tank warns services left out of Brexit trade talks, BOE’s Bailey tells banks to prepare for no-deal exit.
  • US Dollar bounces off three-month low amid risk reset, pre-ECB moves.
  • US Jobless Claims and UK Construction PMI could also offer intermediate direction.

Having risen for the five consecutive days, GBP/USD fades upside momentum while declining to 1.2543, down 0.24%, ahead of the London open on Thursday. In addition to the hard Brexit concerns and the coronavirus (COVID-19) news, the US dollar’s bounce from multi-day low also contributed to the pair’s pullback. While the markets are quiet during the pre-ECB moves, risk-tone also reshuffled despite the absence of any major catalysts.

The US dollar index (DXY) bounces back from the lowest since March to 97.48, up 0.16% on a day, by the press time. The reason could be traced from the early-day Newsmax interview by US President Donald Trump.

The Republican leader showed readiness to not use further militaries to tame the protests while also not announcing any sanctions on Chinese counterpart Xi Jinping. However, his upbeat comments concerning the US economy’s recovery seems to have put a bit under the US dollar.

On the other hand, Bloomberg cites the UK think tank while saying, “Britain’s dominant services industry is being left out of the country’s post-Brexit trade negotiations, putting a large part of the economy at risk of profound damage.” It should also be noted that the Sky News earlier spotted the BOE Governor Andrew Bailey asking major banks to prepare for no-deal Brexit.

Elsewhere, the UK is in talks with the rival of China’s Huawei for 5G networks after creating a spat with the Chinese company.

Concerning the virus, UK’s Business Secretary, Alok Sharma has been tested for the COVID-19 after feeling unwell during the House of Commons' appearance.

Against this backdrop, US 10-year Treasury yields dropped 2.2 basis points to 0.74% whereas stocks in the Asia Pacific also struggle for direction.

While the Brexit talks are likely not expected to offer any major positive signals, traders will keep eyes on the ECB’s expected stimulus as well as the UK Construction PMI, forecast 29.7 versus 8.2 prior, may limit the Cable’s immediate fall.

Technical analysis

Not only a 100-day SMA level of 1.2565, but the 1.2600 round-figure and April month top near 1.2645/50 could also keep the bulls chained. Alternatively, the early-May top near 1.2465/60 seems the immediate support to watch during further weakness.

Additional important levels

Overview
Today last price 1.2536
Today Daily Change -38 pips
Today Daily Change % -0.30%
Today daily open 1.2574
 
Trends
Daily SMA20 1.2305
Daily SMA50 1.237
Daily SMA100 1.2568
Daily SMA200 1.2673
 
Levels
Previous Daily High 1.2616
Previous Daily Low 1.2547
Previous Weekly High 1.2394
Previous Weekly Low 1.2164
Previous Monthly High 1.2601
Previous Monthly Low 1.2076
Daily Fibonacci 38.2% 1.2589
Daily Fibonacci 61.8% 1.2573
Daily Pivot Point S1 1.2542
Daily Pivot Point S2 1.251
Daily Pivot Point S3 1.2473
Daily Pivot Point R1 1.2611
Daily Pivot Point R2 1.2647
Daily Pivot Point R3 1.2679

 

 

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

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD stabilizes after US retail sales smash estimates

EUR/USD has bounced off its lows but remains below 1.20 after US retail sales smashed estimates with a 9.8% leap. Moreover, jobless claims tumbled to 576,000. Markets are digesting the big bulk of data.

EUR/USD News

GBP/USD rises toward 1.38 ahead of Brexit meeting

GBP/USD maintains a cautious approach below 1.3800, accumulating minor losses. Global risk uncertainties weigh on the pair. Investors await the Brexit meeting on the NI issue.

GBP/USD News

Ripple aims for significant rebound toward $2

XRP price has had an impressive 240% rally since April 3, hitting a three-year high of $1.96 and moving closer to ranking third again in terms of market capitalization, only $6 billion behind BNB at the moment. 

Read more

XAU/USD jumps above $1,760 amid slumping US T-bond yields

Gold extended its daily rally beyond $1,760 on Thursday. 10-year US Treasury bond yield is down more than 4% on the day. US Dollar Index falls into the negative territory below 91.60.

Gold News

Citi (C) beats on EPS and revenue, investment banking booms!

Citigroup (NYSE:C) reports Q1 2021 earnings showing strong growth in investment banking following on from Goldman smashing it on Wednesday. Citi shares are trading $74.20 in pre-market up nearly 2%.

Read more

Forex MAJORS

Cryptocurrencies

Signatures