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13 Feb 2020
2 min read

GBP/USD Battling To Consolidate

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Written by OspreyFX News Team

*OspreyFX would like to state that traders should research extensively before following any information given hereby. Please read our Risk Disclosure for more information.

GBP/USD Battling To Consolidate Below 1.3000

  • British economy stuck in the same statistics as Q4 of 2019.
  • Demand zone. Speculation on whether it will give up or not.

Nothing interesting has occurred in the first week of February. Nothing is driving the USD to the upside due to the surge in demand across the board. At the forefront of the UK’s fundamentals, the British economy has been stuck in the statistics shown for the Q4 of 2019. This demonstrates a slowdown and a limited boost in general terms, according to the latest data published during the second week of February.

Also, the testimony before the US Congress by the Federal Reserve’s Chairman, Jerome Powell, didn’t generate enough action to shake the price action in the USD-related pairs at the Forex markets.

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GBP/USD at the mercy of UK fundamentals

Nothing new has crossed the wires from such talks. It seems like the GBP/USD pair is at the mercy of British economic news in a post-Brexit era. A strong demand zone has been established around 1.2780, where the buyers are trying to contain the declines in the Cable. That’s why a rally to re-test the 200 SMA at the H4 chart is likely to happen, to target the 1.3181 area to the first degree.

Once that level is cleared out by the bulls, the pair will be on its way to reaching the 1.3306 level. A key barrier is also guarded around the highs from December at 1.3506.

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Will the demand zone give up?

To the downside, a lower breakout could happen at the current stage, targeting the 1.2773 region. If it gives up in favor of the sellers, the bearish bias could extend toward the 1.2579 level. Beyond that area, critical support lies at 1.2403, where the bears will struggle to continue with the overall bias. Technical oscillators retain their stances. The RSI indicator is trading above the 50 level. Momentum is turning flat, but still remains slightly above the equilibrium zone.

*OspreyFX would like to state that traders should research extensively before following any information given hereby. Please read our Risk Disclosure for more information.