GBP/USD analysis: dollar resumes advance
|GBP/USD Current price: 1.2810
- UK budget presentation failed to motivate Pound's bulls.
- Dollar stronger as risk-off returns in the US afternoon.
The GBP/USD pair spent most of this first day of the week holding above 1.2800 ending the day marginally lower in the 1.2800 price zone. The most relevant event of the day was UK's Chancellor Phillip Hammond presenting the kingdom's budget. Among his opening remarks, he said "the era of austerity is over," among other encouraging statements that clearly failed to motive Pound's bulls, more concerned these days about the effects of Brexit on the UK economy, and Hammond words over the weekend, claiming that a no-deal Brexit will need adjustment to this budget. Growth forecast was revised slightly higher and the expected deficit lower. Minor data from the UK showed that Consumer Credit in the UK rose by less-than-expected in September, up by £0.785B, while Mortgage Approvals in the same month were up by 65.269K, better than the 65.000K forecasted. On Tuesday, the UK will release the CBI Realized Trades Survey for October.
Meanwhile, the pair remains near the multi-month low of 1.2776 hit last week, and technically bearish according to intraday technical readings, as the pair is below a strongly bearish 20 SMA, which capped an early attempt to advance and is currently around 1.2840, while technical indicators turned south, the Momentum accelerating to fresh daily lows and the RSI currently at 28, in line with further slides ahead particularly on a break below 1.2775.
Support levels: 1.2775 1.2740 1.2700
Resistance levels:1.2850 1.2880 1.2925
View Live Chart for the GBP/USD
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.