GBP/USD staggering near 1.32 ahead of the UK's first-ever monthly GDP reading


  • 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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD drops below 1.1300 for the first time in two weeks

EUR/USD remains under bearish pressure in the American session on Monday and trades at its lowest level in two weeks slightly below 1.1300. US Markit Manufacturing and Services PMIs missed market expectations by a wide margin in early January. The S&P 500 Index is down nearly 2% after the opening bell.

EUR/USD News

GBP/USD extends daily slide toward 1.3450

GBP/USD continues to stretch lower toward mid-1.3400s on Monday as the mood continues to sour. Wall Street's main indexes are down between 1.7% and 2.1% after the disappointing PMI data from the US.

GBP/USD News

Gold declines toward $1,830 despite falling US bond yields

Gold climbed above $1,840 during the European trading hours but erased its daily gains to turn flat on the day at around $1,830. The benchmark 10-year US T-bond yield is down more than 2% on Monday as safe-haven flows continue to dominate the financial markets. 

Gold News

Crypto carnage continues to unfold

Bitcoin price has witnessed a massive crash over the past week, undoing the gains seen since July 25. Ethereum, Ripple and other altcoins have followed suit, experiencing an even worse crash. 

Read more

Nvidia extends losses after Bitcoin’s overnight flash crash

NVDA investors are getting used to seeing the colour red after a year in 2021 when all they saw was green. On Friday, shares of NVDA fell by 3.21% and closed the final trading day of the week at $223.74.

Read more

Forex MAJORS

Cryptocurrencies

Signatures