Search ForexCrunch
  • Sterling continuing to lose ground against the Greenback as inflation, Brexit talks hit on Tuesday.
  • GBP bulls have been waiting patiently for some good news out of the UK that they can buy.

The GBP/USD is still trading near recent lows, testing near 1.3420 just ahead of the London market session.

The Sterling sunk to a new low for 2018 on Monday as Brexit concerns continue to plague the Pound. Risk assets across broader markets rallied on Monday following headlines that the US and China have agreed to avoid any further tariffs while they continue trade negotiations, but the GBP couldn’t capitalize on the market rally and continued to slump.

GBP/USD trying to hang onto 1.34 ahead of UK inflation as Brexit talks resume

Tuesday brings inflation reports for the UK’s economy at 09:00 GMT, and traders are hoping that early 2018’s downturn is set to end, after consistently sour economic  data knocked the Bank of England (BoE) off-track for a May rate hike.

Brexit talks are also set to resume today, and positive headlines regarding headway on the EU’s customs union and ongoing border concerns could give the Sterling some much-needed lift against the US DOllar.

GBP/USD levels to watch

As  FXStreet’s Chief Analyst Valeria Bednarik noted  on the GBP/USD’s technical stance, “the pair has gained downward traction short-term, now developing below a mild bearish 20 SMA in the 4 hours chart. The Momentum indicator hovers within negative levels, turning south above its daily low, while the RSI indicator is steady at 33, favoring another leg lower in the pair during the upcoming sessions.”

Support levels:  1.3390 1.3355 1.3320

Resistance levels: 1.3445 1.3490 1.3520