- GBP/USD keeps bounces off 1.3300 despite Brexit, virus concerns.
- Bloc shows mild acceptance to the UK’s fishing terms, EU Chief Von der Leyen, UK PM Johnson eyed for resolution.
- Fears of more British areas to be put under Tier 4 lockdown from December 26 gain momentum.
- No major data from the UK but the US calendar remains populated, risk headlines remain as the key.
GBP/USD ticks up to 1.3375 while consolidating the previous three days’ downside during Wednesday s Asian session. In doing so, the Cable pays a little heed to The Telegraph headlines suggesting more lockdowns in Britain are on the way. Also challenging the corrective pullback is the Brexit deadlock that’s far from over.
EU’s VDL, UK PM Johnson have Brexit reins, more lockdowns ahead…
Although policymakers from the European Union (EU) and the UK have been sweating for months, the final touches are in the hands of European Commission President Von der Leyen (VDL) and UK PM Boris Johnson. The latest Brexit chatters suggest the bloc is up for comprising 25% of its existing €650m of quota rights in UK waters for six years. Though, disagreements over the details require the EU and the UK leaders to step in.
On the other hand, the Telegraph came out with the news confirming the rumors that the government had been mulling the idea of more stringent activity restrictions on Tuesday. “The announcement is likely to come on Wednesday following a meeting of the Covid-O operations committee and government sources have warned of the rising risk of a full national lockdown in the New Year,” said the news.
It should also be noted that the US dollar’s rally and the recently increased risks of the US-China tussle and the America-Russia tension offer extra hurdles to the GBP/USD recovery moves.
Against this backdrop, Wall Street closed mixed and the US 10-year Treasury yields marked losses of nearly two basis points (bps) by the end of Tuesday’s North American trading.
Looking forward, Brexit and virus variant are the two major catalysts to watch for the GBP/USD traders while US data concerning Durable Goods Orders and Michigan Consumer Sentiment Index can offer intermediate moves.
Technical analysis
Having breached 21-day SMA, GBP/USD sellers are targeting a 50-day SMA level around 1.3225. However, any further downside will be probed by an ascending trend line from November 02, at 1.3210 now. Meanwhile, an upside clearance beyond 21-day SMA, currently around 1.3395, need to cross the early-month high near 1.3540 to recall the buyers.
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 holds losses near 1.1350 ahead of ECB policy decision
EUR/USD stays on the back foot near 1.1350 in European session on Thursday. The pair loses ground on the back of a broad US Dollar rebound and as traders turn cutious ahead of the European Central Bank interest rate decision and Lagarde's press conference.
Gold price retreats from record high as profit-taking kicks in
Gold price retreats after touching a fresh all-time peak earlier this Thursday and erodes a part of the previous day's blowout rally though the downside remains cushioned. A slight improvement in the global risk sentiment, bolstered by hopes of US trade negotiations, turns out to be a key factor undermining the precious metal.
GBP/USD stays offered below 1.3250 as US Dollar attempts a bounce
GBP/USD remains under pressure below 1.3250 in Thursday's European trading, snapping its seven-day winning streak. A tepid US Dollar recovery amid risk appetite prompts the pair to pullback from six-month highs of 1.3292 set on Wednesday. Traders look to tariff headlibnes and US data for fresh impetus.
RAY sees double-digit gains as Raydium unveils new Pumpfun competitor
RAY surged 10% on Wednesday as Raydium revealed its new meme coin launchpad, LaunchLab, a potential competitor to Pump.fun — which also recently unveiled its decentralized exchange (DEX) PumpSwap.
Future-proofing portfolios: A playbook for tariff and recession risks
It does seem like we will be talking tariffs for a while. And if tariffs stay — in some shape or form — even after negotiations, we’ll likely be talking about recession too. Higher input costs, persistent inflation, and tighter monetary policy are already weighing on global growth.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.