- Pound trades around 1.2860 during early Tuesday.
- The pair dropped after fourth-quarter GDP missed estimates the previous day.
- BoE Governor Mark Carney’s speech and Brexit developments can provide fresh directives to traders.
The GBP/USD pair trades better bid near 1.2860 while heading towards European session on Tuesday. The pair dropped yesterday after the fourth-quarter 2018 GDP growth lagged behind market consensus of 0.3% to 0.2%. Investors now await Bank of England (BoE) Governor Mark Carney’s comments for the fresh impulse. Also in the watch list will be, the developments on the Brexit front.
GBP/USD closed at the lowest levels since early January on the UK data miss yesterday but recovered some of the losses around initial Tuesday. BoE’s Carney is scheduled to deliver a speech relating to “the latest developments in the global economy and risks to the outlook” in London around 13:00 GMT today.
The Governor is up for a speech after the British GDP rose the smallest in 2018 since the year before he took over as the BoE Chief in 2013. The UK economy is already finding it hard to confront the Brexit problems and the central bank has recently cut down growth forecast to the lowest in a decade during its last week's monetary policy meeting.
On the Brexit update, the latest Sky News report cited that the UK PM Theresa May discussed changes to the key blocks in the Brexit negotiations with the former European Council President Herman van Rompuy. On a separate note, the Sun reported that the cabinet ministers are expecting Theresa May is preparing to resign as the PM in the UK summer. It should also be noted that EU & UK leaders are presently struggling to overcome Irish backstop, which if solved can re-open the Brexit negotiation for the British PM.
Given the present downturn in the UK data, the BoE Governor might not refrain from conveying economic weakness and Brexit uncertainty, as he did recently. Though, the positive signals could have a higher upside impact on the British Pound (GBP).
GBP/USD Technical Analysis
Considering GBP/USD’s sustained observance to immediate descending trend-line, at 1.2920 now, sellers are likely in control of the price movement. Should the pair clear 1.2920 resistance, 1.2980 and 1.3000 may gain buyers’ attention.
Meanwhile, 1.2830 and 1.2800 seem adjacent supports for the pair during further declines. However, additional downside past-1.2800 can recall 1.2725 and 1.2700 rest-points.
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 retreats toward 1.0850 despite weak US employment data
EUR/USD loses its traction and declines toward 1.0850 after testing 1.0900 earlier in the session. Because Nonfarm Payrolls data for October missed the market expectation by a wide margin due to hurricanes and strikes, the US Dollar manages to hold its ground.
GBP/USD climbs above 1.2950, looks to end week little changed
GBP/USD benefits from the improving risk mood and trades in positive territory above 1.2950 in the American session on Friday as markets ignore the weak labor market data from the US. The pair remains on track to end the week flat.
Gold clings to small gains near $2,750 after US data
Gold clings to marginal recovery gains and trades slightly above $2,750. The 10-year US Treasury bond yield struggles to push higher after the dismal October jobs report and weaker-than-expected PMI data from the US, helping XAU/USD keep it footing.
Bitcoin Weekly Forecast: Run toward fresh all-time high hinges on US presidential election results
Bitcoin could experience a price pullback in the next few days ahead of the US presidential election, analysts say, an event that will be key to determining whether and how the crypto class will be regulated in the years to come.
Bank of Japan holds rates steady amid signs of modest GDP growth
Monthly industrial production results have been mixed but generally indicate a modest recovery in third-quarter GDP. Clear guidance from the Bank of Japan remains elusive, with each upcoming meeting being pivotal.
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.