- GBP/USD traders await the US markets’ reopen, the UK Parliament resumption for fresh clues.
- Brexit negative headlines, political uncertainty at the UK keep exerting downside pressure ahead of the key day.
Having slumped to a three-week low at the month-start, the GBP/USD pair takes the rounds to 1.2060 during Tuesday’s Asian session.
While increasing odds of October month snap election in the UK keep the British Pound (GBP) bears happy, recent headlines from the BBC and the UK Telegraph conveys comments from the key Brexit personalities, like Stephen Barclay and Dominic Cummings, which dimmed prospects of a trade deal with the EU.
Adding to the sentiment, Barclaycard shows that almost 1 in 5 people in Britain are stockpiling everyday items in case of future shortages while the UK BRC Like-For-Like Retail Sales dropped 0.5% YoY in August versus previous increase of +0.1%.
Investors now await the resumption of the British Parliaments as many cross-party Members of the Parliaments (MPs), including Tory rebels, stand ready to challenge the United Kingdom (UK) Prime Minister (PM) Boris Johnson’s pledge to leave the EU on October 31 with or without a deal.
Although the Tory leader has already warned Conservatives of another election in October if he fails today, the opposition Labour party leader Jeremy Corbyn puts his best efforts to make it happen.
Elsewhere, Chinese media is again on the front to criticize the Trump administration’s trade tactics while the US awaits the dragon nation’s use of the military in Hong Kong to flash a warning.
Not only UK politics but the return of the US traders after an extended weekend will also propel market liquidity.
Technical Analysis
Pair sellers now await the downside break August month low, near 1.2015, in order to target 2017 bottom surrounding 1.1987 whereas an uptick beyond 1.2100 round-figure could challenge 21-day simple moving average (DMA) level of 1.2145.
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 challenges 1.0500 on Dollar's bounce
The US Dollar now picks up further pace and weighs on the risk-associated assets, sending EUR/USD to the boundaries of the key 1.0500 region and at shouting distance from its 2024 lows.
GBP/USD remains weak and puts 1.2600 to the test
GBP/USD remains on the back foot and now approaches the key support at 1.2600 the figure in response to the resurgence of the bid bias in the Greenback.
Gold faces extra upside near term
Gold extends its bullish momentum further above $2,660 on Thursday. XAU/USD rises for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. Markets await comments from Fed policymakers.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
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.