Risk aversion dominates the markets on Monday. US Dollar Index consolidates near 10-day lows. Brexit uncertainty continues to weigh on GBP. The GBP/USD pair failed to preserve the bullish momentum that it build up following the BoE’s hawkish surprise last week and failed to rise above the 1.33 mark. After encountering a technical resistance at 1.3290, the pair has gone into a consolidation phase as it struggled to take advantage of the USD weakness in the risk-off environment. At the moment, the pair is trading at 1.3266, virtually unchanged on the day. Today’s data from the United States showed that the National Activity Index released by the Federal Reserve Bank of Chicago slumped to -0.15 in May, pointing out to a slowdown in the economic activity. On the other hand, Dallas Fed Manufacturing Business Index improved to 36.5 in June from 26.8 in May. Meanwhile, following a Wall Street Journal report that claimed the United States was planning to block technology exports to China and the Treasury Department was drafting a plan to prevent companies with 25% Chinese ownership to buy technology firms in the U.S., concerns over a long-lasting trade dispute with China forced investors to move away from risk carrying assets. Both the Dow Jones Industrial Average and the S&P 500 indexes are losing more than 1.5%. On the other hand, earlier in the day the UK PM Theresa May’s Spokeswoman reiterated that the government was confident about reaching a Brexit deal with the EU and added that the deal would be supported by employers. Technical outlook Despite the recovery witnessed last week, the RSI indicator on the daily chart continues to stay below the 50 mark, suggesting that buyers haven’t shown a strong commitment yet. On the upside, 1.3300/1.3310 (psychological level/20-DMA/Jun. 22 high) could be seen as the first technical resistance ahead of 1.3410 (50-DMA) and 1.3500 (psychological level). Technical supports align at 1.3220 (daily low), 1.3150 (Jun. 19 low) and 1.3100 (psychological level/Jun. 21 low). FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/GBP Technical Analysis: Euro bulls manage to keep EUR/GBP above 0.8800 FX Street 3 years Risk aversion dominates the markets on Monday. US Dollar Index consolidates near 10-day lows. Brexit uncertainty continues to weigh on GBP. The GBP/USD pair failed to preserve the bullish momentum that it build up following the BoE's hawkish surprise last week and failed to rise above the 1.33 mark. After encountering a technical resistance at 1.3290, the pair has gone into a consolidation phase as it struggled to take advantage of the USD weakness in the risk-off environment. At the moment, the pair is trading at 1.3266, virtually unchanged on the day. Today's data from the United States showed that… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
