GBP/USD Current price: 1.2978
- The UK and the EU kick-started two weeks of intense talks about a trade deal.
- UK economic progress continued in September, according to Markit.
- GBP/USD is holding on to gains near the critical 1.30 threshold.
The GBP/USD pair traded as high as 1.2991, underpinned by the ruling upbeat mood. The pair not only found support in rallying equities but also in mounting hopes for a breakthrough in Brexit talks. Despite the EU and the UK remaining far apart in some critical issues, UK PM Johnson and EU Commission leader, Ursula von der Leyen had agreed to extend negotiations until October 31, a sign that none of them favors a no-deal exit. Two weeks of intense talks began this Monday.
Earlier in the day, Markit published the final version of the UK Markit Services PMI, which resulted in September at 56.1, better than the previous 55. On Tuesday, Markit will publish the UK September Construction PMI foreseen at 54.1 from 54.6 previously.
GBP/USD short-term technical outlook
The GBP/USD pair holds on to daily gains ahead of the Asian opening trading in the 1.2970 price zone. The 4-hour chart shows that the Momentum indicator eased, but that the RSI indicator holds steady around 61, reflecting the latest range rather than suggesting an upcoming decline. In the mentioned chart, a bullish 20 SMA provided intraday support, currently in the 1.2920 price zone.
Support levels: 1.2925 1.2870 1.2815
Resistance levels: 1.3010 1.3050 1.3085
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 treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.