|

GBP/USD ticks higher to session tops, remains below 1.2700 handle post-UK data

  • The final UK GDP print matches original estimates and stands at 0.5% in Q1 2019.
  • A modest USD weakness helped gain traction; no-deal Brexit fears might cap gains.
  • The key focus remains on the crucial Trump-Xi meeting at the key G20 summit.

The GBP/USD pair ticked higher and refreshed session tops in reaction to the latest UK macro releases, albeit remained below the 1.2700 handle.

The final version of the UK GDP report showed that the economic growth stood at 0.5% during the first quarter of 2019, with the yearly rate holding steady at 1.8% and matching the original estimates.

Meanwhile, the total business investment fell by 1.5% on yearly basis, as against 1.4% drop expected, but was largely offset by current account figures, showing a deficit of £30.045 billion £32.0 billion expected.

This against the backdrop of a modest US Dollar weakness provided a minor lift to the major, albeit persistent fears of a no-deal Brexit might continue to keep a lid on any strong follow-through positive move.

With today's UK macro data out of the way, traders now look forward to the US economic data - featuring the releases of core PCE price index, for some short-term impetus later during the early North-American session.

The key focus, however, will remain on the US President Donald Trump's meeting with his Chinese counterpart Xi Jinping, which might influence the broader market sentiment and drive the greenback in the near-term.

Technical levels to watch

GBP/USD

Overview
Today last price1.2668
Today Daily Change-0.0008
Today Daily Change %-0.06
Today daily open1.2676
 
Trends
Daily SMA201.2673
Daily SMA501.2795
Daily SMA1001.2947
Daily SMA2001.292
Levels
Previous Daily High1.2726
Previous Daily Low1.2661
Previous Weekly High1.275
Previous Weekly Low1.2506
Previous Monthly High1.3178
Previous Monthly Low1.2559
Daily Fibonacci 38.2%1.2686
Daily Fibonacci 61.8%1.2701
Daily Pivot Point S11.265
Daily Pivot Point S21.2623
Daily Pivot Point S31.2585
Daily Pivot Point R11.2714
Daily Pivot Point R21.2752
Daily Pivot Point R31.2779

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

More from Haresh Menghani
Share:

Editor's Picks

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress
The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.