GBP/USD Price Forecast – GBP/USD Trades Flat As Brexit Woes Limit Upside Move Amid Sundued USD

The Brexit headlines might continue to act as an exclusive driver of the sentiment surrounding the British Pound in near future.
Colin First

The GBP/USD pair had a good two-way move on Thursday but finally managed to end the day in positive territory for the second consecutive session. The British Pound remains supported by the UK PM May’s victory in the leadership challenge on Wednesday and got an additional boost from some positive comments by the UK Brexit Secretary Stephen Barclay, saying that the direction of travel on the backstop is moving in the right direction and both sides see it as temporary. The pair climbed to an intraday high level of 1.2687 yesterday though concerns over May’s ability to get her Brexit deal through the parliament kept a lid any strong follow-through. The pair traded with a mild negative bias through the Asian session on Friday but has still managed to hold its neck above the 1.2600 handle amid uncertainty over the Fed’s rate hike path in 2019, especially after the US President Donald Trump latest criticism on Thursday.

Warnings from Brussels that no further negotiation room is available are becoming increasingly stern

As of writing this article, GBPUSD pair is trading at 1.2624 down by 0.06% on the day with slow but steady downward decline heading into Friday’s London markets. The Cable market has stalled out as traders await further moves on Brexit, with little on the data docket to cap off a volatile week that has seen the Sterling peak-to-trough around 280 pips against the greenback. Yesterday’s EU summit saw representatives of the union firmly refuse PM May’s bid to seek even more negotiations in Brussels while declaring that no further concessions or negotiations will be taking place and stated that the offer on the table is all-or-nothing that UK will get from them. Meanwhile on EU’s end, President of the European Commission Jean-Claude Juncker announced earlier today morning that the European Union will begin publishing all information concerning a no-deal Brexit scenario and their preparations for such an event will begin on December 19th.

The UK economic docket lacks any major market-moving economic releases while the US economic docket highlights the release of monthly retail sales data for November along with Manufacturing and Service PMI data which suggests that today’s session will offer some short term opportunities for traders during north American market hours when USD price dynamics could affect the pair’s price action slightly. From a technical perspective, the pair is developing above a firmly bearish 20 SMA but well below the 200 EMA which heads marginally lower at around 1.2820 price levels. Technical indicators have also lost the positive momentum and now hover around their mid lines. While these factors do not confirm a strong bearish price action, they continue to hint at risk being skewed to downside.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.