GBP/USD stops further declines ahead of UK GDP


  • GBP/USD seesaws near three-week low after Moody’s cut UK outlook to negative.
  • The broad USD strength and market’s cautious mood ahead of the key British data limit pair’s moves.
  • The UK GDP, Manufacturing/Industrial Production in the spotlight amid the US holiday.

Although broad US dollar (USD) strength, coupled with the Moody’s cut to UK’s credit outlook, exert downside pressure on the GBP/USD pair, the quote seesaws around 1.2793 while heading into the London open on Monday.

The greenback keeps the latest gain extended as the global investors seek safety amid uncertainty surrounding the US-China trade deal and protests in Hong Kong. Also supporting the USD’s safe-haven demand could be the geopolitical crisis in the Middle East.

At the United Kingdom’s (UK) political front, Chancellor’s failure to justify criticism of the opposition Labour party’s spending plans raise doubts over the Prime Minister (PM) Boris Johnson’s lead in December polls. Also adding to the ruling party’s tension is Scottish National Party’s (SNP) go ahead with the general election campaign.

As a result, the market’s risk-sentiment has been gloomier with most Asian stocks declining more than 1.0% led by Hong Kong’s higher than 2.0% losses.

Given the absence of the United States (US) traders, due to Veterans Day Holiday, markets will look for the British data for fresh impulse. Among them, preliminary reading of the third quarter (Q3) Gross Domestic Product (GDP), coupled with Manufacturing and Industrial Production numbers for September, will be the key.

While the UK GDP is expected to recover to +0.3% from -0.2% on QoQ, the YoY numbers might soften to 1.1% from 1.3%. Further, Manufacturing Production could shrink -0.2% versus -0.7% prior while Industrial Production might improve to -0.1% from -0.6%.

Technical Analysis

An area comprising 21-day Exponential Moving Average (EMA) and June month high around 1.2790/85 becomes important for pair sellers while buyers look for an upside break of 1.2860 for fresh entry.

Additional important levels

Overview
Today last price 1.2794
Today Daily Change 11 pips
Today Daily Change % 0.09%
Today daily open 1.2783
 
Trends
Daily SMA20 1.2862
Daily SMA50 1.2555
Daily SMA100 1.2453
Daily SMA200 1.2705
 
Levels
Previous Daily High 1.2826
Previous Daily Low 1.2769
Previous Weekly High 1.2943
Previous Weekly Low 1.2769
Previous Monthly High 1.3013
Previous Monthly Low 1.2194
Daily Fibonacci 38.2% 1.279
Daily Fibonacci 61.8% 1.2804
Daily Pivot Point S1 1.276
Daily Pivot Point S2 1.2736
Daily Pivot Point S3 1.2703
Daily Pivot Point R1 1.2816
Daily Pivot Point R2 1.2849
Daily Pivot Point R3 1.2873

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Bearish hammer on D1 ahead of ECB minutes

EUR/USD is looking heavy ahead of the minutes of the ECB Oct policy meeting, which are expected to show the members stand divided on which course to take. Waning trade optimism will likely keep the EUR on the defensive.

EUR/USD News

GBP/USD turns positive above 21-DMA as challenges to Tories recede

With the Tory supporters paying little heed to the previous day’s ITV debate, not to forget a surprise turnaround in the opposition Labour party loyalists, GBP/USD trades  better bid above 1.2900 while heading into the London open on Thu.

GBP/USD News

USD/JPY bounces-off 50-DMA but lacks follow-through

USD/JPY has bounced up from the 50-day MA support of 108.28. China's Vice Premier Liu He is cautiously optimistic about the prospects of the US-China trade deal. Related markets, however, are not buying Liu He's optimism, keeping the recovery in check. 

USD/JPY News

Gold: Doji on D1 questions bulls amid mixed trade sentiment

Although the United States’ (US) support for Hong Kong protesters favors the broad risk-off momentum, the mixed response from Chinese diplomats and a bearish candlestick formation question Gold buyers around $1,473 during early Thursday.

Gold News

Hong Kong now a feature in trade negotiations?

The US Senate and House have both passed the Hong Kong Human Rights and Democracy Bill, so now it heads to the desk of US President Trump to either sign or veto it. Sources suggest that the President will sign it into law.

Read more

Forex MAJORS

Cryptocurrencies

Signatures