GBP/USD trading lightly ahead of EU CPI, US GDP
- Sterling sideways in Asia ahead of blustery data-heavy day.
- Brexit jitters continue to drag behind Sterling ahead of PM's Friday speech.
The GBP/USD has had a quiet Asia session, but is bouncing to the high side side near 1.3920 heading into the London market.
The Sterling fell against the US Dollar yesterday as Fed chair Jerome Powell's Congressional testimony proved more bullish than markets were expecting, sending the US Dollar up the charts on newfound confidence.
Brexit continues to weigh heavily on the British Pound, and Friday could be a make-or-break scenario for brexit fears: Prime Minister Theresa May will be giving a speech on Friday where she outlines her vision of a post-Brexit UK as she fights to stay on-balance with hardline Brexiteers within her ruling Conservative on one side and European Union (EU) leaders in Brussels on the other. Adding to the furor is UK businesses, clamoring for clarificiation on what the regulatory landscape will look like after Brexit officially begins next March.
The European and US sessions both promise plenty of volatility today, with EU CPI figures at 10:00 GMT, and US Annualized GDP numbers at 13:00. Both reports are top-tier and should produce plenty of movement.
GBP/USD Technicals
The 34 EMA is still providing support on Daily candles, but H4 charts show a potential break below a sideways triangle; if the 34 EMA fails to hold a decline to the 200-day SMA may be on the cards. Support is coming from 1.3856 and 1.3800, with resistance priced in at 1.4067 and 1.4144.