GBP/USD wavers above 1.2400, next week’s Brexit talks eyed

  • GBP/USD bounces off 1.2415 to probe the intraday range’s resistance.
  • US dollar pullback offers immediate recovery amid a quiet session.
  • Trade war, coronavirus and Brexit continue to portray the trading theme.

GBP/USD pulls back from 1.2415 to 1.2428, up 0.05% on a day, while heading into the London open on Friday. Even so, the Cable keeps the intraday range between 1.2415 and 1.2430 by the press time. Although the US dollar’s mild weakness seems to benefit the quote off-late, a lack of market liquidity seems to curb the moves amid a light calendar.

The US dollar index (DXY), a gauge of the greenback versus the major currencies, eases from a four-day top to 97.36, down 0.03%, as we write. An increase in the US coronavirus (COVID-19) cases seems to exert downside pressure on the USD. As per the State Health Department, new cases surged to the fresh record high of 39,327 on Thursday versus 38,115 the last. Amid the rising numbers, Texas Governor ordered a pause to all reopening plans.

Not only in the US, but Britain also flashed red signals after PM Boris Johnson eased lockdown restrictions. The latest data suggest 149 virus-related deaths. The same put the Tory leader’s push for normal conditions in danger despite a wide appreciation of the UK’s tracking system and efforts to find the vaccine.

Other than the virus woes, Brexit is also probing the pair’s momentum. UK’s Chief Negotiator David Frost again criticized the European push during Thursday while describing the expectations for the key departure talks starting from Monday. "For the first time since March, Brexit negotiators will meet face to face in Brussels and then London. These meetings will be smaller and focused on seeing whether we can begin to make genuine and rapid progress towards an agreement. This needs to be a real negotiation and some of the EU's unrealistic positions will have to change if we are to move forward,” said the diplomat.

Additionally, the US threats to levy tariffs on the EU/UK goods and fears of no Britain-Tokyo deal in the stipulated six weeks add pressure on the market sentiment. It’s worth mentioning that the hopes of a Value Added Tax (VAT) adding strength to the Cable also waned recently after the Institute for Fiscal Studies (IFS), a leading UK think-tank, warned against a temporary cut.

Against this backdrop, the US 10-year Treasury yields consolidate earlier losses near 0.68% whereas stocks in Asia also print mild gain as we write.

Given the lack of major data/events from the UK, the pair traders may keep eyes on the risk catalysts for fresh impetus. Among them, Brexit headlines might gain major attention ahead of Monday’s talks. On the other hand, the US Michigan Consumer Sentiment Index and Personal Consumption Expenditure and Personal Income details might entertain traders during the US session.

Technical analysis

Considering Thursday’s Doji near the four-day low, bulls may await a clear break above a descending trend line from June 10, at 1.2440 now, to aim for 50-day EMA near 1.2460. Meanwhile, the pair’s declines below Thursday’s low of 1.2389 could again attack the monthly bottom surrounding 1.2325 and May 19 top near 1.2300.

Additional important levels

Today last price 1.2426
Today Daily Change 7 pips
Today Daily Change % 0.06%
Today daily open 1.2419
Daily SMA20 1.2545
Daily SMA50 1.2419
Daily SMA100 1.249
Daily SMA200 1.2692
Previous Daily High 1.2464
Previous Daily Low 1.2389
Previous Weekly High 1.2688
Previous Weekly Low 1.2344
Previous Monthly High 1.2601
Previous Monthly Low 1.2076
Daily Fibonacci 38.2% 1.2436
Daily Fibonacci 61.8% 1.2418
Daily Pivot Point S1 1.2384
Daily Pivot Point S2 1.2349
Daily Pivot Point S3 1.2308
Daily Pivot Point R1 1.2459
Daily Pivot Point R2 1.25
Daily Pivot Point R3 1.2535



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD loses 1.1800 amid escalaing US-Sino tensions

EUR/USD dips sub-18 after the US reported an increase of 1.763 million jobs in July, better than estimated but pointing to a deceleration. Escalating Sino-American tensions are boosting the dollar and fiscal talks are eyed. 


GBP/USD resumes decline, weighed by UK concerns, US-China conflict

GBP/USD trades at fresh weekly lows below 1.3050 as the dollar got a sudden boost from mounting tensions between the world's two largest economies. UK Chancellor Rishi Sunak said the furlough scheme that is underpinning the economy cannot last forever.


Gold: Meteoric rally falters, closes the week below $2050

Dollar comeback poured cold water on gold’s record-breaking rally. US-China woes, US stimulus deadlock and upbeat NFP boosted the USD. The focus stays on US-China trade talks amid light US docket next week.

Gold News

Bitcoin may extend the recovery once Gold resumes the rally

Gold retreated from the recent highs, but the sentiments are still bullish. Cryptocurrencies resumed the upside, some altcoins are demonstrating strong gains. ETH/BTC stopped the downside correction and settled at $0.03300.

Read more

WTI extends slide toward $41, on track to post weekly gains

Crude oil prices continued to fall on Friday and the barrel of West Texas Intermediate (WTI) touched a daily low of $41.05 before recovering modestly.

Oil News