GBP/USD: Will it conquer 1.30 handle on an uptick in UK wages?


The bulls regain poise in mid-Asia, prompting a fresh buying-wave in the GBP/USD pair, in a bid to regain 1.2950 barrier amid persisting broad based US dollar weakness and risk-off market profile.

GBP/USD bounces-off 20-DMA at 1.2913

The major is trying to break higher from the overnight consolidative mode above 20-DMA support, finally taking advantage of ongoing weakness in the US dollar against its main competitors, in the wake of the political uncertainty surrounding the US President Trump.

Headlines hit the wires earlier on the day regarding the Comey memo being subpoenaed by the House Oversight Committee. Trump asked then-FBI Director James Comey to end a probe into Trump's former national security advisor Flynn.

Moreover, investors remain uncertain over the US President Trump’s ability to push through reforms and stimulus programs, as promised by him during his election campaigns.

Meanwhile, the pound also gains momentum as markets remain expectant of an increase in the hourly earnings data due to be reported alongside the employment report in the session ahead.

However, it remains to be seen if the spot can regain 1.2950 levels, as risk-off remains the underlying theme so far this session, which could weigh down on the risk-currency GBP.

GBP/USD Levels to consider            

A break above 1.2940 (May 15 high) could lift the pair above1.2961 (May 9 high), beyond which a test of 1.2990 (7-week high) is imminent. Conversely, a break below 1.2872 (May 15 low), leading to a subsequent break below 1.2842/29 (May 12 & 4 low) is likely to drag the pair towards testing its next support near 1.2800 (key support).

 

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

Take advantage of market volatility with our daily Forex, Crypto and Indices Trade Ideas!

Become Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds on to weekly gains, aims to 1.2100

EUR/USD pressures this week high at 1.2079 after the EU services sector moved back into expansion territory according to Markit, the first time since August.

EUR/USD News

GBP/USD extends decline towards the 1.3800 price zone

Upbeat UK data fell short of boosting the pound, hurt by Brexit jitters in Ireland. US macroeconomic figures making the difference in the dollar’s favor.

GBP/USD News

Bitcoin, Ethereum and XRP plummet, breaching critical support levels

Bitcoin price has dropped 12.7% since yesterday and shows no signs of stopping. Ethereum price follows the pioneer crypto’s lead and might retest $2,000 again. Unlike BTC or ETH, XRP price shows signs of recovery as long as it stays above a critical demand zone.

Read more

XAU/USD drops below $1,780 area as US T-bond yields rebound

Gold lost its traction after climbing toward $1,800 on Friday. 10-year US Treasury bond yield is up nearly 2%. Latest PMI data from US underlined strong price pressures.

Gold News

Bionano Genomics Inc runs into technical resistance, put options may work here

BNGO shares have continued to suffer post the retail meme crowd moving on. BNGO shares bounce from lows as DeMark buy signal flashes on Monday. BNGO shares trend up to resistance at 100 day moving average.

Read more

Forex MAJORS

Cryptocurrencies

Signatures