- Syria tensions led risk-aversion back in vogue?
- Markets stay focused on the US retail sales ahead of a Big week.
The GBP/USD pair is seen reversing most gains heading towards the European open, as the bears appear to regain control amid deteriorating risk sentiment, with the European traders hitting their desks and reacting to the weekend's news of the US-led airstrikes on the Syrian chemical weapons facilities.
Moreover, markets prefer to remain in a wait and see mode before placing any big bets on the pound ahead of a data-intensive big week ahead, as all eyes remain on the UK jobs, CPI and retail sales figures to gauge the Bank of England’s (BOE) next policy move.
In the meantime, the risk trends amid developments around the global politics will continue to drive the risk asset, Cable, ahead of the US retail sales report and Fedspeaks due later on Monday.
GBP/USD levels to watch
According to Jim Langlands at FX Charts, “although Cable failed at the highs on Friday, the dailies do look positive and if q.4300 can be taken out then we are left looking at a test of the Jan (2018) high 1.4346, above which there is then little to stop a run at the post-Brexit high 1.5022. In the meantime, the short-term charts now look a little heavy and hint at a possible return to minor levels at 1.4220 and at 1.4200 ahead of more substantial support at 1.4160.”
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.