Market Overview

GBP/USD Forecast: Heading Toward The 1.2820 Price Zone

GBP/USD Forecast: Heading Toward The 1.2820 Price Zone

GBP/USD Current Price: 1.2877

  • UK Construction output fell for a sixth consecutive month in October.
  • UK government repeated it won’t be extending the Brexit transition period.
  • GBP/USD heading toward the 1.2820 price zone, an immediate Fibonacci support.

The GBP/USD pair is trading below the 1.2900 level, falling during European trading hours following the release of the UK Markit Construction PMI. The report showed that construction output fell for the sixth consecutive month, with the index coming in at 44.2 in October, better than the previous 43.3, although still close to the ten-year low of 43.1 seen in June.  In the Brexit front, UK PM Johnson’s spokesperson, said earlier today that the government would not be extending the Brexit transition period beyond January 31st. However, speculative interest remains focused on the December elections, and the consequences the result may have on Brexit and the pound. This Tuesday, Markit will unveil the October Services PMI, seen at 49.7 from 49.5 previously.

GBP/USD Short-Term Technical Outlook
The GBP/USD pair is trading at 1.2880 and near its daily low, and the 4-hour chart suggests that the pair may continue easing in the short-term, although in the wider perspective bulls retain the lead. In the mentioned chart, the pair settled below a bullish 20 SMA, while the larger moving averages continue heading higher below the current level. Technical indicators in the meantime, maintain their bearish slopes within negative levels. A critical Fibonacci support comes at 1.2820, where buyers should surge to keep the longer-term bullish potential intact.
Support levels: 1.2885 1.2850 1.2820

Resistance levels: 1.2975 1.3010 1.3050

Image Sourced from Pixabay

Posted-In: FXStreet United KingdomNews Eurozone Forex Global Markets General


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