• GBP/USD sheds 0.12%, reversing from 1.2163 to 1.2112, as the Middle East conflict escalates.
  • Gold prices surge past $2,000, reflecting heightened market volatility and risk-off sentiment.
  • Upcoming UK and US economic releases, including PMIs and monetary policy decisions, to provide further direction.

GBP/USD registers minimal losses of 0.12% after hitting a daily high of 1.2163 on risk appetite, but news headlines showing an escalation of the Middle East conflict weighed on the major. Therefore, the pair reversed its course trades at 1.2112, as sellers eye a test of 1.2100.

Pair reverses course from daily high as geopolitical tensions weigh on market sentiment

Volatility is the game's name, as shown by Gold prices climbing past $ 2,000 for the first time since May 16, 2023. News that Israel intensified its ground offensive in Gaza, destroying communications and Internet services in Palestina, according to Pallet, the Palestinian telecommunications company. Meanwhile, military Israeli authorities commented that they “have intensified attacks on Gaza. The Air Force is widely attacking subterranean targets and terror targets in a significant fashion.”

Reactions across the globe emerged, with the US urging Israel to stop a “full-scale” invasion, instead using a surgical approach using aircraft and special operation forces.

Aside from this, US economic data revealed earlier depicts inflation continues to ease, but it’s struggling to drop below the 3% threshold. The Fed’s preferred gauge for inflation, the Core PCE, ticked down from 3.8% to 3.7% YoY in September, while PCE was unchanged compared to August 3.4%.

Recently, the University of Michigan revealed that Consumer Sentiment slightly improved, but inflation expectations deteriorated. For a one-year period, Americans expect prices to rise by 4.2%, while for a five-year period, are expected to stay at 3%.

Next week, the UK economic docket will feature FS&P Global/CIPS PMIs alongside the Bank of England monetary policy decision. On the US front, the calendar would reveal the Conference Board Consumer Confidence, S&P Global and ISM Manufacturing PMIs, US Nonfarm Payrolls, and the US Federal Reserve monetary policy decision.

GBP/USD Technical Levels

GBP/USD

Overview
Today last price 1.2118
Today Daily Change -0.0011
Today Daily Change % -0.09
Today daily open 1.2129
 
Trends
Daily SMA20 1.2179
Daily SMA50 1.2364
Daily SMA100 1.2575
Daily SMA200 1.2441
 
Levels
Previous Daily High 1.214
Previous Daily Low 1.207
Previous Weekly High 1.222
Previous Weekly Low 1.209
Previous Monthly High 1.2713
Previous Monthly Low 1.2111
Daily Fibonacci 38.2% 1.2113
Daily Fibonacci 61.8% 1.2097
Daily Pivot Point S1 1.2086
Daily Pivot Point S2 1.2043
Daily Pivot Point S3 1.2016
Daily Pivot Point R1 1.2156
Daily Pivot Point R2 1.2183
Daily Pivot Point R3 1.2226

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD clings to strong daily gains near 1.0900

EUR/USD clings to strong daily gains near 1.0900

EUR/USD trades at its strongest level since mid-October near 1.0900 after starting the week with a bullish gap. The uncertainty surrounding the US election outcome weighs on the US Dollar and helps the pair continue to push higher.

EUR/USD News
GBP/USD holds above 1.2950 as USD stays under pressure

GBP/USD holds above 1.2950 as USD stays under pressure

GBP/USD stays in positive territory above 1.2950 after failing to clear 1.3000 earlier in the day. Heading into the US presidential election, the 10-year US Treasury bond yield is down more than 2% on the day, weighing on the USD and allowing the pair to hold its ground.

GBP/USD News
Gold trades around $2,730

Gold trades around $2,730

Gold price is on the defensive below $2,750 in European trading on Monday, erasing the early gains. The downside, however, appears elusive amid the US presidential election risks and the ongoing Middle East geopolitical tensions. 

Gold News
Three fundamentals for the week: Toss up US election, BoE and Fed promise a roller coaster week

Three fundamentals for the week: Toss up US election, BoE and Fed promise a roller coaster week Premium

Harris or Trump? The world is anxious to know the result of the November 5 vote – and may have to wait long hours for the outcome. Markets will also respond to the composition of Congress. The Bank of England and the Federal Reserve will enter the fray afterward.

Read more
US presidential election outcome: What could it mean for the US Dollar?

US presidential election outcome: What could it mean for the US Dollar? Premium

The US Dollar has regained lost momentum against its six major rivals at the beginning of the final quarter of 2024, as tensions mount ahead of the highly anticipated United States Presidential election due on November 5.

Read more
Best Forex Brokers with Low Spreads

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.

Read More

Forex MAJORS

Cryptocurrencies

Signatures