• Disappointing UK macro data further dents the already weaker sentiment around GBP.
• A modest USD pull-back from multi-week tops helped limit deeper losses, at least for now.
• Investors still seemed reluctant to place aggressive bets amid persistent Brexit uncertainties.
The GBP/USD pair held on to its disappointing UK macro data-led weakness and is currently placed at the lower end of its daily trading range, around the 1.2900 handle.
The British Pound remained depressed at the start of a new trading week and weakened further, dropping to an intraday low level of 1.2894 against the buck, in a knee-jerk reaction to today's dismal UK macro releases.
The downtick, however, turned out to be rather short-lived, with a modest US Dollar pull-back from multi-week tops prompting some short-covering move during the mid-European trading session.
The greenback failed to capitalize on the early up-move and was now being weighed down by a slight improvement in risk-sentiment, further reinforced by a goodish pickup in the US Treasury bond yields.
Meanwhile, the pair lacked any firm directional bias and remained well within the post-BoE trading range as investors still seemed reluctant to place any aggressive bets amid persistent Brexit uncertainties.
Hence, it would be prudent to wait for a strong follow-through selling or a sustained move beyond the key 1.30 psychological mark before positioning for the pair's next leg of a directional move.
Technical levels to watch
GBP/USD
Overview:
Today Last Price: 1.2917
Today Daily change %: -0.14%
Today Daily Open: 1.2935
Trends:
Daily SMA20: 1.3002
Daily SMA50: 1.2812
Daily SMA100: 1.2891
Daily SMA200: 1.3024
Levels:
Previous Daily High: 1.2976
Previous Daily Low: 1.2921
Previous Weekly High: 1.3103
Previous Weekly Low: 1.2854
Previous Monthly High: 1.3214
Previous Monthly Low: 1.2438
Daily Fibonacci 38.2%: 1.2942
Daily Fibonacci 61.8%: 1.2955
Daily Pivot Point S1: 1.2912
Daily Pivot Point S2: 1.2889
Daily Pivot Point S3: 1.2856
Daily Pivot Point R1: 1.2967
Daily Pivot Point R2: 1.3
Daily Pivot Point R3: 1.3023
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.