- Risk-off fails to drag the Sterling down for long, GBP makes healthy recovery despite market shocks.
- Little macro data on the docket has the GBP's Brexit fears balancing against broader market sentiment.
The GBP/USD pair is threading higher ahead of the European session, testing around the 1.4190 area and looking for more.
The Sterling declined heavily in Tuesday's decidedly risk-off market stance, but a floor was found from 1.4065 and the GBP has been lifting staunchly despite Greenback strength from the New York session's broad market sell-off.
Little data on the UK side greets Wednesday
The macro calendar is a thin affair for Wednesday's session except for US GDP figures at 12:30 GMT, which are expected to clock in at 2.7% versus the previous figure's 2.6%. Despite the poor showing for any UK-centric macro numbers, the Sterling is still being underpinned by some minor headlines providing just enough buoyancy for the Pound to stop itself from falling further down the risk hole.
Brexit still a concern, but fears are fading
The ongoing Brexit process has been a marathon of unknowns weighing down the GBP in 2018, but with the recent agreement between the European Union (EU) and the UK to develop a thorough Brexit strategy, concerns about the UK's exit from the EU are beginning fade. The latest from Brexit is a promise from the UK to Ireland, stating that they will find a solution to the 'hard-border' problem that has been a cause of growing concern for the Irish, in the face of the UK's Brexit potentially establishing a firmer border between the two countries, but the UK is assuring Ireland that a solution is being worked on and will be announced in that most auspicious of timeframes, "soon".
The Bank of England (BoE) posed a risk to the Sterling's bullish stance yesterday when they admitted they were mulling expanding some capital buffers for their internal banking system, and GBP traders recoiled temporarily at the thought, but the fear quickly faded after the BoE ultimately left their buffer rates unchanged, though they will be keeping a close eye on things.
GBP/USD Levels to consider
Yesterday's decline took a chunk out of the GBP/USD, but the pair is still in full-on ascending mode after beginning to climb in early March, and the pair is trading back up into last week's high points with little challenge. The next task for GBP bulls will be to clear resistance at this week's high at 1.4244, and from there the resistance to beat will be the 1.4300 major handle that the pair failed to climb back in January, while support rests at yesterday's low of 1.4065, with last week's low of 1.3915 waiting beyond.
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 stays below 1.1100, looks to post weekly losses](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/european-euro-coin-on-top-of-american-dollar-bill-11292130_XtraSmall.jpg)
EUR/USD stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
![GBP/USD struggles to find a foothold, trades near 1.3150](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-157771037_XtraSmall.jpg)
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
![Gold retreats toward $2,500 ahead of the weekend](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-bars-50657756_XtraSmall.jpg)
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
![Week ahead – Investors brace for NFP amid Fed rate cut speculation](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/america-back-to-work-gm178972493-25143312_XtraSmall.jpg)
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
![Easing Eurozone inflation to back an ECB rate cut in September](https://editorial.fxstreet.com/images/Macroeconomics/Countries/Europe/Eurozone_countries/Eurozone/eu-flags-flying-at-the-european-commission-building-brussels-belgium-24759579_XtraSmall.jpg)
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.