GBP/USD trying to hold above 1.39 as risk-off drives the Greenback
- Sterling slipping on Dollar-bidding risk aversion, but downside remains limited.
- A weak macro calendar sees markets looking ahead to Fed rate decision next week.
The GBP/USD is on the low side for Friday's Asia session, trading near Thursday's lows and testing the 1.3930 region.
Market-wide risk aversion on trade wars fears stemming from Trump's tariffs has capped the Sterling this week, and the Japanese government land sale scandal is keeping risk appetite at bay as we head into the last day of the trading week.
The macro calendar is thin for the Sterling and the Greenback for Friday, but some knock-on volatility could present itself if EU CPI figures come out at a big hit or miss, but chances are slim as these are non-preliminary numbers. Macro will likely turn to the Fed's Rate Decision next Wednesday, where the Fed is expected to begin lifting interest rates, and some market movement leading up to the event is likely as traders jostle for position ahead of rising global interest rates.
Next Tuesday will also see CPI figures for the UK, and eyes will be watching to see if the Bank of England's (BoE) sunny outlook and rate strategy that seeing increases beginning in May is on par with economic data moving forward.
GBP/USD Technicals
The pair may be pricing in a lower high on Daily candles, with the latest high of 1.3995 failing to capture the 1.4000 handle and acting as resistance, though the 34 EMA is supporting action from 1.3890. A break lower could see the GBP/USD challenging the week's opening price of 1.3850. A push higher on the other hand, will see further resistance from late February's swing high of 1.4070.
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
