GBP/USD to face further Brexit pressure ahead of US GDP figures


  • The Sterling to face further losses as the GBP/USD accelerates to the downside.
  • Brexit headlines continue to drive the Cable, and news on the EU-UK split are leaning heavily towards the disappointing side.

The GBP/USD is trading into 1.2800 heading into Friday's London market session after accelerating declines out of a bearish channel yesterday following comments from UK Brexit Secretary Domonic Raab who blamed the European Union for the lack of a Brexit deal.

The UK's Raab blamed the EU's "intransigence" on Brexit negotiations for the lack of a deal as talk deadlines rapidly approach, and the lack of any workable deals between the UK and the EU is leaving Pound traders in the lurch, forcing the GBP lower across the board as fears of a no-deal hard Brexit continue to rise, with November's deadline to have a deal in place ahead of March's final Brexit date fast approaching and the two sides seeming to move further apart after months of endless talking-up by representatives on both sides.

The economic calendar leaves the GBP completely unrepresented, and the Cable will be seeing market sentiment holding the reigns to end the week's trading, though US Preliminary GDP figures due at 12:30 GMT today will no doubt see plenty of Greenback-based action, with 2018's third-quarter GDP expected to print at 3.3%, a slight contraction from the previous quarter's 4.1%.

GBPUSD levels to watch

The Cable is set firmly into a bearish downtrend and shows no signs of slowing, and according to FXStreet's Valeria Bednarik: "from a technical point of view, the slump accelerated after the pair broke below the 61.8% retracement of the 2016/18 rally at around 1.2880, and has room to extend its decline, particularly on a break below 1.2785, September monthly low. In the 4 hours chart, the 20 SMA heads south almost vertically far above the current level, while technical indicators are currently losing downward strength but in extremely oversold levels, with no signs of changing course. Some consolidation could be expected, but the bearish potential will be strong as long as the price remains below the mentioned 1.2880 price zone."

 Support levels: 1.2810 1.2785 1.2740

Resistance levels:1.2850 1.2880 1.2925

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays on the back foot and trades in negative territory below 1.0700 as the US Dollar benefits from upbeat data in the American session. S&P Global reported that the economic activity in the US private sector continued to expand at a robust pace in June.

EUR/USD News

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD remains under bearish pressure and trades at its lowest level since mid-May below 1.2650. The stronger-than-forecast Manufacturing and Services PMI data from the US helps the USD hold its ground and causes the pair to stretch lower.

GBP/USD News

Gold drops below $2,340 as US yields rebound

Gold drops below $2,340 as US yields rebound

Gold loses its traction and trades deep in the red below $2,340 in the second half of the day on Friday. The benchmark 10-year US Treasury bond yield pushes higher following the upbeat PMI data from the US, weighing on XAU/USD.

Gold News

Bitcoin retraces to crucial support

Bitcoin retraces to crucial support

Bitcoin price encounters resistance at weekly highs before retracing to seek support at a crucial level, while Ethereum and Ripple align closely with Bitcoin's movements, gearing up to surpass resistance barriers and embark on upward rallies.

Read more

Week ahead – US PCE inflation the highlight of a relatively light agenda

Week ahead – US PCE inflation the highlight of a relatively light agenda

Core PCE inflation to test bets of two Fed rate cuts in 2024. Yen awaits BoJ Summary of Opinions, Tokyo CPI. Canadian CPI data also enters the spotlight.

Read more

Forex MAJORS

Cryptocurrencies

Signatures