• Broad-based USD selling bias once gain helped bounce off mid-1.3000s support area.
• The uptick lacked strong conviction amid the lack of progress in the UK cross-party talks.
The GBP/USD pair quickly reversed an early European session dip to daily lows and is currently placed at the top end of its daily trading range, just below the 1.3100 handle.
The pair once again managed to find decent support near mid-1.3000s, with some renewed US Dollar selling bias helping the pair to regain some positive traction on Friday and recover a major part of the previous session's modest downtick.
The greenback failed to capitalize on the overnight attempted rebound from two-week lows and also shrugged off a sharp intraday upsurge in the US Treasury bond yields, which eventually turned out to be one of the key factors providing a minor lift to the major.
Despite the positive factor and the latest Brexit development, wherein the EU leaders granted the UK a second Brexit extension until Oct. 31, the lack of progress in the UK cross-party talks - to break the Brexit deadlock, kept a lid on any runaway rally for the British Pound.
Hence, it would be prudent to wait for a sustained move above the 1.3100 handle, possibly a follow-through strength beyond the 1.3120 region, before traders start positioning for any further near-term appreciating move amid absent relevant UK economic data.
Meanwhile, the US economic docket - highlighting the release of Prelim UoM Consumer Sentiment, will now be looked upon for some short-term impetus and capture some meaningful trading opportunities on the last trading day of the week.
Technical levels to watch
Yohay Elam, FXStreet's own Editor writes, “1.3120 is a double top after holding the pair down twice this week. 1.3200 was a high point last week and is also a round number. 1.3270 was a swing high in late March.”
“Support awaits at 1.3050 which provided support recently. 1.3030 was a cushion for the pair earlier this week. 1.2985 was a swing low last week, and 1.2960 was the low point in March,” he added further.
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 trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD continues its downward trend for the fourth consecutive day, driven by a stronger US Dollar influenced by the hawkish market sentiment surrounding the Federal Reserve and expectations of prolonged higher interest rates.
GBP/USD: The first downside target is seen at the 1.2600–1.2605 zone
GBP/USD trades on a weaker note around 1.2620 during the early European session on Friday. The decline of Pound Sterling is backed by the growing speculation that the Bank of England will begin the rate-cut cycle this year.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.