GBP traded lower against USD and closed at 1.3027.
GBP/USD: Modestly flat above 1.3000, Huawei talks in the spotlight
- GBP/USD sellers catch a breath after four consecutive days of declines.
- The UK’s favor for the Chinese tech giant negatively affects its friendship with the US.
- Brexit headlines keep calm while BOE readies for the decision.
GBP/USD: Outlook remains mixed for the time being – UOB. The rapid bounce from the low suggests the decline could be running ahead of itself. In other words, further sustained weakness in GBP appears unlikely. From here, GBP is more likely to trade sideways at these lower levels, expected to be within a 1.2990/1.3060 range.”
According to the Analysis, pair is expected to find support at 1.2987 and a fall through could take it to the next support level of 1.2966. The pair is expected to find its first resistance at 1.3057, and a rise through could take it to the next resistance level of 1.3078.
AUD traded higher against USD and closed at 0.6762.
- Flat in a 0.6755/0.6773 range, with solid interest all day in Asia
- CPI just beat expectations, suggesting the RBA will remain on hold Feb 4
- Eikon RBAWATCH priced an RBA cut at around 20% pre CPI and now 12%
- RBA likely on hold leaves the virus, risk and USD in the driving seat
- Bounce in stocks has not been reflected in the AUD, downside the weak one
- Charts, momentum studies, 5, 10 & 21 DMAs track south – bearish setup
- Sustained break of yesterday’s 0.6737 low would target 0.6670 2019 low
- Close above 0.6791, 61.8% of this week’s fall & 5 DMA to end downside bias
According to the Analysis, pair is expected to find support at 0.6745 and a fall through could take it to the next support level of 0.6737. The pair is expected to find its first resistance at 0.6767 and a rise through could take it to the next resistance level of 0.6775.
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