• GBP/USD is holding in a consolidation zone in New York trade, little changed as investors await the BoE. 
  • Traders await the next impetus and weigh Brexit risk and US fundamentals. 

GBP/USD is down some 0.15% on the day so far after travelling from a high of 1.3693 to a low of 1.3641. Sterling has been pressured at the start of the week and fell to the lowest level vs the greenback in over two weeks as investors weigh the Bank of England's policy stance vs. the ongoing spat between the UK and EU that has morphed into a disagreement with France over fish.

The latest on this front comes with the British Foreign Secretary Liz Truss who has said that Paris had “behaved unfairly” and made “completely unreasonable threats”, with the two sides at loggerheads over the number of licences the UK has handed French vessels keen to fish in its territorial waters.

BoE in focus

Meanwhile, the Bank of England is expected to hike by 15bp, but also to push back against some of the tightening bets through their inflation forecasts. Nevertheless, there are prospects for GBP weakness. Traders, in this regard, will be on the lookout for dialled down hawkishness in an overpopulated long position in speculative positions. Net positioning on the pound rose by 8.6% of open interest, reaching +10%, in the week ending 26 October which likely allows scope for some short-squeezing.

''GBP net longs positions jumped higher as speculation increased that the BoE could bring forward rate hikes,'' analysts at Rabobank explained. ''GBP had been slow to react to speculation about a possible 2021 BoE rate rise given fears of a policy mistake. Focus on the November 4 BoE policy meeting.'' 

Fed taper eyed

Across the pond, the US dollar has eased versus its main rivals on Monday flowing its biggest daily rise in more than four months in the previous session. The Federal Reserve is widely expected to announce a tapering of stimulus, a factor that has fueled the greenback's rise in recent weeks. The dollar index DXY, which measures the US currency against six rivals, was down 0.18% at 93.95 at the time of writing. 

GBP/USD

Overview
Today last price 1.3658
Today Daily Change -0.0029
Today Daily Change % -0.21
Today daily open 1.3687
 
Trends
Daily SMA20 1.3698
Daily SMA50 1.3715
Daily SMA100 1.3781
Daily SMA200 1.3852
 
Levels
Previous Daily High 1.3801
Previous Daily Low 1.3668
Previous Weekly High 1.3829
Previous Weekly Low 1.3668
Previous Monthly High 1.3834
Previous Monthly Low 1.3434
Daily Fibonacci 38.2% 1.3719
Daily Fibonacci 61.8% 1.375
Daily Pivot Point S1 1.3637
Daily Pivot Point S2 1.3586
Daily Pivot Point S3 1.3504
Daily Pivot Point R1 1.3769
Daily Pivot Point R2 1.3851
Daily Pivot Point R3 1.3902

 

 

 

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 

EUR/USD News

GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 

GBP/USD News

Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures