- GBP/USD continued showing some resilience below the very important 200-day SMA.
- Coronavirus jitters continued benefitting the safe-haven USD and capped the upside.
The GBP/USD pair spiked to fresh session tops, around the 1.2780 region in the last hour, albeit lacked any strong follow-through and quickly retreated few pips thereafter.
Having shown some resilience below the very important 200-day SMA, the pair managed to attract some buying interest on Thursday and shot to two-day tops during the mid-European trading session. The British pound got a minor lift after the UK finance minister, Rishi Sunak announced the new jobs support scheme.
In the new measures introduced this Thursday, the government will directly support the wages of people in work and increase wages to cover two-thirds of lost pay. The support scheme was a bit more generous than expected, which, in turn, prompted some technical buying around the sterling from a technically significant level.
However, concerns about the second wave of coronavirus infections, along with the likelihood of the global economic slowdown continued lending some support to the US dollar's safe-haven status. This, in turn, held bulls from placing any aggressive bets and capped the upside for the GBP/USD pair amid risk of a no-deal Brexit.
It is worth reporting that the EU's chief Brexit negotiator, Michel Barnier in London for informal talks until Friday. Investors might wait for fresh Brexit updates before positioning for any firm near-term direction. In the meantime, developments surrounding the coronavirus saga might continue to influence the GBP/USD pair.
Market participants now look forward to the US economic docket, highlighting the release of Initial Weekly Jobless Claims and New Home Sales data. This, along with a scheduled testimony by the Fed Chair Jerome Powell and Treasury Secretary Steven Mnuchin, will influence the USD price dynamics and provide some short-term trading impetus.
Technical levels to watch
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.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.