GBP/USD sideways around 1.2950, holds onto weekly gains


  • GBP/USD flat on Friday, consolidating weekly gains under 1.3000.
  • Pound outperforms and recovers half of last week's losses versus US dollar.

The GBP/USD printed a fresh daily low at 1.2931 after the beginning of the American session and quickly bounced back above 1.2950. On Friday, it is moving sideways, below 1.3000, consolidating strong weekly gains.

The pound rose across the board over the last five days, recovering after falling sharply during the previous week. GBP/USD bottomed back on September 11 at 1.2761, the lowest since late July. Since then, it rose more than two hundred pips.

The recovery was supported by some modest change in Prime Minister Johnson position toward the Internal Market bill, agreeing to give Parliament a veto on some part of the bill. Also, the European Commission President mentioned she still thinks a deal is possible.

The Bank of England’s dovish message, hinting at the possibility of negative interest rates only weakened the pound for a few hours. GBP/USD pulled back to 1.2860 and rebounded.

Next week economic releases include as most important the PMIs. Attention will likely focus on Brexit developments and speeches from FOMC members. “As recent volatility has shown, sterling is becoming more sensitive to what happens after the Brexit transition period expires at year-end. Parliament is set to approve the Internal Markets Bill during the week, and markets will focus on the EU's response. If talks collapse, the pound would tumble, while attempts to reach a compromise would boost it”, explained Yohay Elam, analysts at FXStreet.

Technical levels

 

GBP/USD

Overview
Today last price 1.2961
Today Daily Change -0.0013
Today Daily Change % -0.10
Today daily open 1.2974
 
Trends
Daily SMA20 1.3108
Daily SMA50 1.2993
Daily SMA100 1.2712
Daily SMA200 1.2732
 
Levels
Previous Daily High 1.2999
Previous Daily Low 1.2865
Previous Weekly High 1.3279
Previous Weekly Low 1.2763
Previous Monthly High 1.3396
Previous Monthly Low 1.2982
Daily Fibonacci 38.2% 1.2948
Daily Fibonacci 61.8% 1.2916
Daily Pivot Point S1 1.2893
Daily Pivot Point S2 1.2812
Daily Pivot Point S3 1.2759
Daily Pivot Point R1 1.3027
Daily Pivot Point R2 1.308
Daily Pivot Point R3 1.3161

 

 

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