- 1.3400 – a tough nut to crack.
- Brexit jitters continue to weigh.
- The UK high street lending, US consumer confidence data eyed.
The GBP/USD pair witnessed some volatility in the Asian trades amid the withdraw in liquidity, although traded well within the familiar 30-pips range below 1.34 handle.
GBP/USD: Better UK data ignored?
The spot reversed almost half of yesterday’s rebound spurred by a sharp rally in oil prices, now extending its choppiness around 1.3370 levels, as holiday-thinned light trading exaggerates the moves.
Meanwhile, the US dollar holds steady against it’s a major peers amid unimpressive US macro news, while the dust settles over the US tax and funding bill approval. The USD index trades flat at 92.84, having faced rejection just shy of 93 handle.
Moreover, the major trades listless as upbeat UK growth numbers were offset by looming uncertainty over the Brexit issue, as markets await the next round of the Brexit negotiations for some clarity.
In the day ahead, the UK high street lending data may offer some fresh incentives to the traders ahead of the US pending home sales and CB consumer confidence releases.
GBP/USD Technical Levels
According to Valeria Bednarik, Chief Analyst at FXStreet, “From a technical point of view, and in the short term, the pair maintains a neutral stance, as the price remains attached to a horizontal 20 SMA, although holding above a 200 EMA, and with technical indicators aiming marginally higher above their mid-lines, rather limiting chances of a downward movement than suggesting some additional gains ahead. Solid UK data is being offset by Brexit jitters, a situation that will likely persist until the next round of negotiations offers fresh clues. Support levels: 1.3340 1.3300 1.3260. Resistance levels: 1.3385 1.3420 1.3465.”
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
AUD/USD: Extra gains in the pipeline above 0.6520
AUD/USD partially reversed Tuesday’s strong pullback and regained the 0.6500 barrier and beyond in response to the sharp post-FOMC pullback in the Greenback on Wednesday.
EUR/USD meets support around 1.0650
EUR/USD managed to surpass the key 1.0700 barrier in response to the intense retracement in the US Dollar in the wake of the Fed’s interest rate decision and Chair Powell’s press conference.
Gold surpasses $2,300 as Dollar tumbles
The precious metal maintains its constructive stance and trespasses the $2,300 region on Wednesday after the Federal Reserve left its FFTR intact, matching market expectations.
Bitcoin price reclaims $59K as Fed leaves rates unchanged
The market was at the edge of its seat on Wednesday to see whether the US Federal Reserve (Fed) would cut interest rates during the Federal Open Market Committee (FOMC) meeting.
The market welcomes the Fed's statement
The market has welcomed the Fed statement, and the S&P 500 is higher in its aftermath, the dollar is lower and Treasury yields are falling. There is still only one cut priced in by the Fed.