Archived Article This article was published more than 5 months ago. The market data, prices, forecasts, and analysis were accurate at the time of publication but may have changed since then. Please use this article for historical reference only and refer to our latest content for current market information.
- GBPUSD has settled below the 1.3300 level as buy support is still available. The weak U.S. dollar is helping sterling but Brexit risk still weighs.
The GBPUSD has settled below the 1.3300 level as buy support is still available. The weak U.S. dollar is helping sterling but Brexit risk would make holding positions over the weekend more risky.
The U.K. released consumer confidence figures today, with a reading of -33 compared to expectations for -34. Traders are not reacting too heavily to these data releases because of the lockdowns. Q4 GDP is expected to be weaker among nations that are enforcing lockdowns. The pound also got a boost from retail sales, which came in at 5.8% versus 4.2% expectations. Again, this will mean little if the lockdowns drag on into Christmas.
Brexit is still a risk for the pound and this makes holding weekend positions risky. Talks were hit by the news that a member had tested positive for the virus. The negotiations continued by virtual call and will continue into the weekend with some EU nations voicing their concern this week about the lack of progress.
GBPUSD Technical Outlook
GBPUSD is still seeing support below the 1.3300 level. The pair is looking for a catalyst to move above the resistance but there is no more data today. The target higher is the 1.3480 level and support is at 1.3000. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.Â
GBPUSD Daily Chart
