GBP/USD: Slips below 1.3100 as Brexit fears renew, trade sentiment improves

  • GBP/USD snaps five-day winning streak, reverses from early-February tops.
  • Fresh calls to delay Brexit deadline, alter the UK’s approach weigh on the Cable.
  • Risk-tone recovers amid global policymakers’ efforts to counter virus implications, China opens Wuhan for travelers.

GBP/USD fails to keep the bids beyond five-week top while declining to 1.3070, down 0.45%, ahead of the London open on Tuesday. Following the folly blown risk aversion wave, traders are paddling back on the sentiment. Also favoring the pullback are fresh doubts over Brexit ahead of Wednesday’s UK budget.

Global policymakers’ efforts to confine the negative implications of the coronavirus (COVID-19) seem to have recently renewed the market’s risk-tone. Among them, US President Donald Trump’s expected stimulus and China’s opening up of the epicenter Wuhan’s borders for travelers are the keys.

That said, the recovery in the US Treasury bonds, as well as the equity futures, likely helped the US dollar to bounce off the multi-month low.

Also favoring the pullback are fresh doubts over Brexit after the EU diplomats, also including some of the opposition Labour Party, raise doubts on the December 2020 deadline amid deal differences, COVID-19 concerns.

On the contrary, the Cable buyers are still hopeful as the BBC reports a bumper £5billion boost for British exports via the first post-Brexit budget, to be released on Wednesday. Earlier during the day, The Sun mentioned that Chancellor Rishi Sunak will also announce relief for salaried employees in his first budget.

Although there are a few economic data/events on the economic calendar, COVID-19/Brexit headlines are likely to keep the present pullback on its track.

Technical Analysis

200-bar SMA on the four-hour chart, near 1.2975, seems to limit the pair’s downside below 1.3000 while any upside below 1.3200-3215 area, including highs marked from January 07, seems to remain doubtful.

Additional important levels

Today last price 1.3063
Today Daily Change -64 pips
Today Daily Change % -0.49%
Today daily open 1.3127
Daily SMA20 1.2945
Daily SMA50 1.3015
Daily SMA100 1.2994
Daily SMA200 1.2709
Previous Daily High 1.3201
Previous Daily Low 1.3035
Previous Weekly High 1.3049
Previous Weekly Low 1.2741
Previous Monthly High 1.3204
Previous Monthly Low 1.2726
Daily Fibonacci 38.2% 1.3137
Daily Fibonacci 61.8% 1.3098
Daily Pivot Point S1 1.3041
Daily Pivot Point S2 1.2955
Daily Pivot Point S3 1.2875
Daily Pivot Point R1 1.3207
Daily Pivot Point R2 1.3286
Daily Pivot Point R3 1.3372



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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more