GBP/USD drops back below 1.3200, ignores risk-on rally in European equities
- Brexit jitters, negative oil prices outweigh the rally in the European equities.
- Focus on the ECB rate decision and US durable goods data for fresh trading opportunities.
GBP/USD broke its bullish consolidative mode above the 1.32 handle and turned negative below the last, as the pound traders turn cautious ahead of the UK Brexit Minster Raab’s press conference following this week’s round of Brexit negotiations with the EU.
Moreover, a bounce seen in the US dollar versus its main competitors ahead of the US durable goods data also capped the upside momentum in Cable. Meanwhile, the risk currency pound failed to benefit from the risk-on rally in the European equities, as markets await the ECB monetary policy announcement due at 11.45 GMT for any rub-off effect on the Sterling.
The spot rallied to fresh eight-day highs at 1.3213 after the US dollar lost ground across the board following US-EU trade agreement put a bid under risk assets. Also, the sentiment was buoyed by the renewed optimism around the Brexit issue after the UK PM May said that she will take over the control of Brexit negotiations.
GBP/USD Technical Levels
The AceTrader Team offers key technical levels for trading GBP/USD.
“Today, y'day's gain to a 1-week high of 1.3200 signals rise from last Thursday’s 10-month trough at 1.2958 has resumed n would head to 1.3217, however, 'bearish divergences' on the hourly indicators would cap price below 1.3293 res n yield decline. Only below 1.3133 signals temporary top made, 1.3111, then 1.3072.”