Currently trading at around the 1.2975-70 region, the session is testing the bottom levels, the slide from the daily bullion of the parity is missing from any new initiatives and, as a result, may be due to a modest recovery in US dollar. The US Dollar Index was able to recover its previous gains with the rising geopolitical tension between the US and North Korea, and was one of the key factors in the weight of the parity.
Meanwhile, the sentiment in the GBP continues to be weak with the Bank of England quarterly inflation report and the persistent Brexit uncertainties, which are perceived to be as tight as the past week.
The parity failed repeatedly to win strong follow-up and was under high pressure, clearly indicating that the near-term regression is far from over. However, the downward-looking outlook can only be confirmed by a downgrade of the 50-day SMA strong support level near the 1.2935-30 region of the pair.
For this reason, investors will continue to focus on the crucial US consumer inflation figures, which can identify the Fed‘s next monetary policy and help parity cut its last transaction range.
The GBP / USD pair is currently trading at 1.2970 with a 0.06% loss.
Significant technical levels for GBP / USD
1.2935-30 region, 1.2900 (psychological level) and 1.2800 average support levels, 1.30 (psychological level), 1.3030 and 1.3100 (psychological level) for the parity level.