GBP/USD Current price: 1.2746
- The UK and the EU will resume Brexit trade talks next Tuesday
- New restrictions came into force in the UK on the back of the latest coronavirus outbreak.
- GBP/USD is technically neutral-to-bearish, could fall further once below 1.2665.
The GBP/USD pair closed a third consecutive day unchanged around 1.2740 last Friday, as the Pound found support in Brexit-related headline. The EU and the UK will start their ninth round of talks this Tuesday, the final stage of Brexit trade talks ahead of the EU summit that will take place in Brussels in mid-October. However, the prevalent demand for the American currency kept the pair confined to familiar levels. By the end of the week, the UK published August Public Sector Net Borrowing, which increased by more than anticipated, reaching£35.195 B from £14.71 B in the previous month.
Meanwhile, more than a quarter of the UK population has to attend restrictive measures, as the latest outbreak in the kingdom is speeding up. With over 6,000 new daily cases in the past four days, Labours have said the government should consider putting on hold the return to universities. The UK won’t release relevant macroeconomic data this Monday.
GBP/USD short-term technical outlook
From a technical point of view, the GBP/USD pair is at risk of falling further. In the daily chart, the pair is stuck around converging 100 and 200 DMAs, while below a bearish 20 DMA. Technical indicators in the mentioned time-frame hold within negative levels, although without directional strength. In the shorter-term, and according to the 4-hour chart, the pair is neutral-to-bearish, unable to advance beyond a bearish 20 SMA, and below the larger ones, which keep heading south. The Momentum indicator is flat around its 100 level, while the RSI indicator stands near oversold readings.
Support levels: 1.2700 1.2665 1.2620
Resistance levels: 1.2780 1.2830 1.2870
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD stays near 1.0800 after upbeat US data
EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.