GBP/USD slumps below 1.29 as DXY advances to fresh 2019 highs


  • GDP data from UK disappoint on Monday.
  • US Dollar Index extends its rally into an eighth straight day.
  • UK PM May's spokesman says meaningful vote won't take place this week.

The GBP/USD pair came under heavy selling pressure during the European trading hours after the data from the UK, once again, highlighted the economic slowdown in the UK. With the greenback gathering further strength in the second half of the day, the pair extended its slide to a new daily low of 1.2867. As of writing, the pair was trading at 1.2877, losing 0.53% on a daily basis.

Earlier today, the UK's Office for National Statistics reported that the real GDP (preliminary) expanded by 1.3% on a yearly basis in the fourth quarter of 2018 after growing by 1.6% in the third quarter and fell short of the market expectations of 1.4%. Underlying details of the report revealed that the total business investment contracted by 3.7%, annually, in the same period. According to other data, industrial production and manufacturing production declined by 0.5% and 0.7%, respectively, on a monthly basis in December.

Meanwhile, supported by a more-than-1% increase seen in the 10-year Treasury bond yield, the US Dollar Index gained traction on Monday and rose to its highest level of 2019 near 97 in the NA session to drag the pair even lower. 

On Brexit-related headlines, British Prime Minister spokesman today announced that the meaningful vote was not expected to take place this week while announcing the PM will make a statement in the Parliament on Tuesday to update lawmakers on Brexit talks.

Technical levels to consider

The initial support for the pair aligns at 1.2845 (50-DMA) ahead of 1.2815 (Jan. 14 low) and 1.2730 (Jan. 10 low). On the upside, resistances are located at 1.2900 (psychological level), 1.2950 (200-DMA) and 1.3025 (20-DMA). 

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

Editors’ Picks

EUR/USD pressured below 1.0950 after ADP, ISM beat

EUR/USD has is trading below 1.0950, under pressure. ADP's private-sector jobs report has shown a loss of only 27,000 jobs, far better than expected. The ISM Manufacturing PMI also beat with 49.1 points.

EUR/USD News

GBP/USD battles 1.24 as UK coronavirus death toll jumps by 31%

GBP/USD is trading around 1.24 The market mood is gloomy as coronavirus continues spreading. The UK's death toll jumped by 31% to 2,352. Markets are digesting US data.

GBP/USD News

Oil prices are poor predictors of recession

Crude price movement before last five recessions are ambivalent. WTI has fallen 66% since January 7 to its lowest price in 18 years. Previous sharp drops in oil did not anticipate downturns.

Read more

Gold: USD 1600 is the major pivot level but is the retracement over?

Gold has been pulling back up since the recent low on March 16th. It's amazing to think that in these uncertain times the price fell to hit a low to USD 1451.32.

Gold News

WTI drops to $20 area after EIA reports huge increase in US crude oil stocks

Crude oil prices came under renewed selling pressure in the last hour after the weekly report published by the US Energy Information Administration (EIA) showed a huge build-up in crude oil stockpiles.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures