GBP/USD testing offers near 1.2670 again amid weaker USD

Looks to take-out stiff resistance near 1.2670/75, as the US dollar remains on the back foot.
But upside appears limited by Brexit uncertainties and thin volumes.

Dhwani Mehta FXStreet

The GBP/USD pair is trying hard to take on its steady recovery mode from near 1.2640 lows beyond the 1.2670/75 supply zone, as the sellers continue to lurk amid ongoing chaos around the Brexit deal.

According to The Independent (a UK newspaper), the UK Labour Party Leader, Jeremy Corbyn, has challenged PM Theresa May to cut short the Christmas recess and recall parliament early in the new year in order to bring forward a critical vote on the Brexit deal.

Meanwhile, The Insitute of Directors (IoD) warned on Thursday that the UK business leaders' confidence has sunk to 18-month lows as Brexit approaches and little progress remains seen.

However, the spot manages to derive some comfort from broad-based US dollar weakness and a better risk environment amid a rebound in oil, stocks and Treasury yields. The greenback remains on the back foot, in the wake of the partial US government shutdown and a dip in the US consumer confidence.

Markets now await the release of the UK second-liner November BBA Mortgage Approvals and US housing data for fresh near-term trading opportunities, as volumes thin out heading into the New Year.

GBP/USD Technical Levels

GBP/USD

Overview:
    Today Last Price: 1.2664
    Today Daily change: 10 pips
    Today Daily change %: 0.0790%
    Today Daily Open: 1.2654
Trends:
    Previous Daily SMA20: 1.2663
    Previous Daily SMA50: 1.28
    Previous Daily SMA100: 1.29
    Previous Daily SMA200: 1.3199
Levels:
    Previous Daily High: 1.2676
    Previous Daily Low: 1.2616
    Previous Weekly High: 1.2708
    Previous Weekly Low: 1.2574
    Previous Monthly High: 1.3176
    Previous Monthly Low: 1.2723
    Previous Daily Fibonacci 38.2%: 1.2653
    Previous Daily Fibonacci 61.8%: 1.2639
    Previous Daily Pivot Point S1: 1.2622
    Previous Daily Pivot Point S2: 1.2589
    Previous Daily Pivot Point S3: 1.2562
    Previous Daily Pivot Point R1: 1.2681
    Previous Daily Pivot Point R2: 1.2708
    Previous Daily Pivot Point R3: 1.274

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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