GBP/USD trims gains, eyes UK data

  • GBP/USD retreats from session highs
  • Focus on UK industrial and manufacturing data and total trade balance.

GBP/USD has backed off from the session high of 1.3519 but remains bid around 1.35 levels on cautious optimism around Brexit deal.

Focus on May's meeting with Juncker

British Prime Minister Theresa May is planning to travel to Brussels Friday morning to have a meeting with the European Council President Donald Tusk and the European Commission President Jean-Claude Juncker to finalize the Irish border deal.

It is believed that the meeting would take place only after the DUP has given the green light, There are reports of a breakthrough on the border issue, but those have not helped Pound much.

Also, the pair could take cues from the UK industrial production and trade balance data. Meanwhile, the USD side of the story could strengthen if the US wage growth numbers beat estimates.

GBP/USD Technical Outlook

Franco Shao from ForexCycle.com writes - " The GBPUSD pair failed in it attempt to break below the bullish support trend line on the 4-hour chart and rebounded strongly from 1.3319, suggesting that the pair remains in the uptrend from 1.3039. As long as the price is above the trend line, the price action from 1.3549 could be treated as consolidation of the uptrend. Further rise to test 1.3549 resistance would likely be seen after the consolidation, and a breakout of this level will indicate that the uptrend has resumed, then next target would be at 1.3657 (Sep 20 high). On the downside, a breakdown below 1.3319 support will confirm that the uptrend had completed at 1.3549 already, then deeper decline to next support level at 1.3220 could be seen. Below this level could trigger further downside movement towards 1.3027 (Oct 6 low)."

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