After touching a two-week low in the previous session, the pound is on the rise versus the US dollar on Friday. GBP/USD is up 0.3% targeting $1.3050 after hitting a nadir of $1.2991 in the previous session.
Whilst the pound has pushed higher on the stronger reading gains are expected to be short lived as no deal Brexit concerns keep the lid on any pound optimism.
Attention will now turn to Parliament where MP’s is due to vote on the Withdrawal Bill. The Bill is expected to pass through the House of Commons without any further hold ups, given Boris Johnson’s 80 seat majority. The Brexit bill contains no possibility of extension will keep no deal Brexit fears alive and kicking
GBP/USD traders will now look ahead to US data releases. GDP, the third revision for Q3. No change is expected from the previous reading at 2.1%, the initial reading was 1.9%. Upbeat personal spending and core PCE would be seen as validating the Fed’s recent decision to keep rates on hold potentially sending the dollar higher.
Levels to watch:
The pair is currently trading below its 50 & 100 sma and above its 200 sma. GBP/USD bounced off support at $1.2990/$1.30. Should the price break through this support, the price decline could accelerate towards support at $1.2950, prior to $1.29. On the upside resistance can be seen at $1.31 prior to $1.3125.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.