- Sterling hitting a softer tone in early Tuesday action.
- Brexit headlines are poseing a thorny problem for Sterling traders as the UK prepares to deliver the first round of monthly GDP figures.
The GBP/USD is trading down near 1.3240 ahead of Tuesday's London market session, and the Sterling continues to be plagued by Brexit concerns.
Prime Minister Theresa May's new 'soft Brexit' proposal has been a shot to the foot of the PM's current leadership team, with EU leaders in Brussels already unlikely to accept the new "third option" proposal, and May's UK cabinet fracturing over the halfway solution, with the UK's Brexit Minister Boris Johnson resigning over the weekend, along with Brexit Secretary David Davis and three other parliamentary Brexit ministers all resigning in protest over the new proposals, which hard-line Brexiteers say betrays the original referendum results.
With Brexit concerns continuing to put a drag on the GBP's chart action, Tuesday sees a raft of economic data, all dropping at 08:30 GMT. May's m/m Industrial Production is expected to come in at 0.5% (last -0.9%), and the m/m Manufacturing Production figure for May is also expected to improve to 0.7% (last -1.4%), but the headline figure for the day will be May's m/m GDP figure for the UK, forecast to come in at 0.3%. This will be the first publishing of monthly GDP figures for the UK, and this particular metric could see irregular market impact as traders grapple with digesting the new metric format.
GBP/USD levels to watch
Markets are twisting on the Sterling, which held a bullish market position until Brexit fears shattered the market quiet, and as FXStreet's own Valeria Bednarik noted on the GBP's technical stance, "technically, the 4 hours chart shows that the pair is currently battling around a still bullish 20 SMA, while technical indicators have stalled their declines around their mid-lines, suggesting that the market likes the softer-Brexit option, as long as May's head doesn't roll, and that they are not yet willing to unwind Pound longs."
Support levels: 13120 1.3190 1.3155
Resistance levels: 1.3285 1.3320 1.3365
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.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.