- Sterling is trapped in consolidation, lacking motivation in either direction ahead of BoE speeches.
- Middle East concerns are clamping down on market sentiment that started the week with a kick upwards.
The GBP/USD is trapped within Wednesday's range, testing around 1.4180 ahead of the European markets.
The Sterling was unable to derive any significant momentum on Wednesday, pushing into 1.4220 but ultimately couldn't capture new ground, falling back below the 1.4200 handle as growing concerns over the Syria crisis continue to push the Middle East instability to the forefront of markets.
UK's PM May to ask Cabinet meeting about Syria strikes - Sky News
The economic calendar for the GBP today sees a cluster of speeches, kicking off with Monetary Policy Committee (MPC) Member Broadbent, who will be taking the podium early at 06:30 GMT, followed by the Bank of England (BoE) Credit Conditions Survey results at 08:30. After that will be the main event, a scheduled speech from the BoE's head, Mark Carney. Carney will be speaking later in the day at 19:00 GMT, where he will be delivering the closing speech for the Public Policy Forum's growth summit, in Toronto, Canada.
The US side of the economic calendar may spark some movement, with US Continuing and Initial Jobless Claims dropping at 12:30 GMT. Continuing Claims are expected to bump slightly from 1.808 million to 1.848 million, while Initial Claims are forecast to decrease, from 242 thousand to 230 thousand.
The UK economy has been middling as of late, and the growth that the UK has seen is being attributed to strong global conditions rather than domestic demand, as noted by the BCC quarterly survey here.
GBP/USD Levels to consider
As FXStreet's Chief Analyst Valeria Bednarik noted earlier, "the technical outlook is still positive, despite the rally seems to have lost momentum, as the pair is in a consolidative stage after recovering roughly 230 pips from last week's low. In the 4 hours chart, the 20 SMA has partially lost its bullish strength but continues heading north below the current level, while technical indicators ease from overbought territory, rather reflecting the ongoing retracement than suggesting an upcoming slide. A break through 1.4244, the high established last March, would favor a rally up to 1.4345, the highest post-Brexit referendum, while the bullish potential will be neutralized on a break below 1.4115."
Support levels: 1.4150 1.4115 1.4080
Resistance levels: 1.4200 1.4245 1.4290
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.