GBP/USD stumbles below 1.3450, Sterling bulls on the backfoot ahead of Wednesday's inflation hearing


  • Sterling heading lower on the new week as positive trade vibes boost the Greenback.
  • Brexit continues to swamp the GBP, Scottish independence comes back into the light.

The GBP/USD is trading down in early Monday trading, kicking down below 1.3450 as the US Dollar makes a broad market recovery on easing trade fears.

This weekend saw a relaxing of trade tensions between the US and China, as the two parties agreed to hold off on imposing any further trade tariffs while they continue the negotiation process. Markets are reacting positively to the news, and the US Dollar is rebounding across the board.

The Sterling continues to suffer at the hands of disappointing economic figures for the UK's economy, and headlines highlighting the many gaps that still exist in patching up the Brexit framework. The final exit day of next March has been stricken from legislation, and the UK may wind up staying within the EU's trade union for several years, while the Irish border debate remains unresolved and talks of another Scottish independence vote loom on the horizon.

The week is starting off on a quiet note for the Sterling, although Wednesday will be bringing Inflation Report Hearings at 08:00 GMT, followed by Retail Sales on Thursday. Following the recent slump in economic data for the UK, GBP bulls will be hoping that a rebound in inflation and Retails Sales can bring the GBP/USD back into the running.

GBP/USD levels to watch

Technical indicators are beginning to turn mixed for the pair, though a bearish stance remains the overarching trend following the pair's break below the recent consolidation range, and as FXStreet's own Valeria Bednarik noted about the pair's technical outlook: "technically the daily chart shows that the 20 DMA heads south almost vertically some 100 pips above the current level, and also that the Momentum indicator heads nowhere right below its mid-line, while the RSI indicator heads lower at 26, having spent almost a month in oversold territory. In the 4 hours chart, the pair presents a neutral-to-bearish stance, holding below a modestly bearish 20 SMA, and with technical indicators heading south, the Momentum within neutral levels, but the RSI gaining downward traction, now around 40, favoring additional declines ahead."

Support levels:  1.3450 1.3410 1.3370

Resistance levels: 1.3490 1.3520 1.3570  

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 retreats below 1.1300 area as NFP-inspired dollar weakness fades

EUR/USD jumped to a daily high of 1.1333 with the initial market reaction to the disappointing November Nonfarm Payrolls data but quickly returned below 1.1300. Rising US Treasury bond yields seem to be helping the dollar stay resilient against its major rivals. 

EUR/USD News

GBP/USDdrops to 1.3250 area as dollar regains strength

GBP/USD spiked above 1.3300 in the early American session with the initial market reaction to the gloomy US November jobs report. However, the greenback regathered strength on hawkish Fed commentary and forced the pair to turn south.

GBP/USD News

Gold struggles to capitalize on weak NFP data, holds near $1,770

Gold spiked to a daily high near $1,780 with the initial market reaction to the disappointing Nonfarm Payrolls data from the US but seems to be having a difficult time preserving its bullish momentum with the 10-year US T-bond yield staying resilient.

Gold News

The bull and the bear case for BTC

Bitcoin price saw a bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. Bitcoin is likely to experience massive volatility as the situation resolves over time. 

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures